USD/CAD flat around 1.2450, as solid US & Canadian labour reports fail to stir the pot


  • USD/CAD is flat at 1.2450 as US and Canadian jobs report fail to trigger lasting volatility. 
  • The pair will remain focused on oil price movements next week with a bare Canadian economic calendar. 

The Canadian dollar has broadly failed to benefit from the release of a strong Canadian labour market report on Friday, much like the US dollar and USD/CAD is sitting in neutral territory on the day around the 1.2450 mark. The pair has been subject to significant chop in recent days, in tandem with the volatile conditions seen in crude oil markets. As things stand, and though crude oil prices are well off weekly lows, WTI is set to end the week down around $2.0 or slightly more than 2.0%.

Bearish impulses from profit-taking, technical selling, big US inventory builds, concerns about demand in China (where a new Covid-19 outbreak is kicking off), and concerns that the US might release oil from its strategic reserve has outweighed the (widely expected) OPEC+ decision not to increase output in December by more than the 400K barrels per day/month rate stipulated in the cartel's current agreement. Looking ahead, with the Canadian economic calendar bare next week, choppiness in crude oil markets will remain a key driver of the pair.  

Strong Canadian Labour Market

The Canadian labour market is on a tear. The economy added 31.2K jobs in the month of October, and while this was a little below the market consensus forecast for 50K, its was entirely driven by gains in full-time employment. Moreover, the private sector gained 70K jobs, taking its five-month count to 618K. That’s amounts to the fastest pace that the Canadian economy has added private-sector jobs on record if the initial post-lockdown reopening period of 2020 is discounted. Hours worked was also up 1.0% MoM, taking the YoY change in hours worked to 7.3%. The unemployment rate dropped more than expected to 6.7% from 6.9% in September.

The strong jobs report bodes well for the Canadian economy, suggesting a strong start to Q4. National Bank of Canada (a local bank, NOT the central bank) believe “there is room for more labour market build up in the months ahead” and cite indicators of strong demand for labour, including CFIB data which shows as many as 49% of SMEs are reporting a lack of skilled labour as limiting production, while 40% are reporting a lack of unskilled labour, with both of these metrics at their highest since 2009. Friday’s jobs report does not harm the prospect of BoC rate hikes as soon as Q2 2022.

USD/Cad

Overview
Today last price 1.2454
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.2456
 
Trends
Daily SMA20 1.2394
Daily SMA50 1.255
Daily SMA100 1.2534
Daily SMA200 1.2483
 
Levels
Previous Daily High 1.2472
Previous Daily Low 1.2377
Previous Weekly High 1.2432
Previous Weekly Low 1.23
Previous Monthly High 1.2739
Previous Monthly Low 1.2288
Daily Fibonacci 38.2% 1.2436
Daily Fibonacci 61.8% 1.2413
Daily Pivot Point S1 1.2398
Daily Pivot Point S2 1.2341
Daily Pivot Point S3 1.2304
Daily Pivot Point R1 1.2493
Daily Pivot Point R2 1.2529
Daily Pivot Point R3 1.2587

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stays pressured as shares slump on Powell's hawkish rhetoric

EUR/USD bears stay in control as Asian shares take a plunge. The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies. The US dollar is bid in Asia and risk aversion remains in play.

EUR/USD News

GBP/USD refreshes monthly low under 1.3450 as Fed, Brexit and UK politics favor bears

GBP/USD takes offers to renew monthly low, down for the second consecutive day. EU to sue UK over deal in bonkers, delay in Brexit talks over NI. Sue Grey's report awaited as UK PM Johnson defends drinks party, animal evacuation from Afghanistan adds to the problems.

GBP/USD News

Gold sticks to weekly lows near $1,815 amid firmer yields

Gold price is meandering near one-week lows of $1,813, as the demand for the US dollar remains unabated amid rising two-year Treasury yields. The two-year US rates spike to fresh 23-month highs of 1.192% as the Fed funds futures tumble on expectations of five rate hikes this year.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more

Forex MAJORS

Cryptocurrencies

Signatures