|

USD/CAD hits monthly highs and reverses after US and Canada job reports

  • In Canada, jobs declined modestly in July by 6,400.
  • In the US, Nonfarm Payrolls rose by 187,000, falling below the market consensus of 200,000.
  • Both the US Dollar and the Loonie weakened across the board after the release of the data.

The USD/CAD initially dropped and then experienced a significant increase, reaching its highest level since early June, just below 1.3400. This movement in the currency pair was driven by employment data from both Canada and the US. As of the current writing, the pair is hovering around 1.3360, below the level it had before the release of the reports.

Canada and US jobs data below expectations 

In Canada, the economy lost 6,400 jobs in July, against expectations of a 21,100 increase. The Unemployment rate rose to 5.5%. This is the first time since COVID that the unemployment rate has increased for three consecutive months. These numbers triggered a decline in the Canadian Dollar across the board.

The fact that the USD/CAD is hovering around the same level is attributed to the US jobs report, which also came in below market estimates and led to a decline in the value of the US Dollar. The Loonie is falling sharply versus NZD and AUD. 

The US economy added 187,000 jobs in July, falling short of the expected 200,000. On a positive note, the Unemployment Rate fell from 3.6% to 3.5%. Average Hourly Earnings rose by 4.4% compared to a year ago, surpassing the market consensus of 4.2%.

US Treasury yields initially spiked but then reversed their course, weighing on the US Dollar. The DXY is down 0.30% for the day, trading below 102.20.

Technical levels 

USD/CAD

Overview
Today last price1.3375
Today Daily Change0.0022
Today Daily Change %0.16
Today daily open1.3353
 
Trends
Daily SMA201.3221
Daily SMA501.3284
Daily SMA1001.3406
Daily SMA2001.3457
 
Levels
Previous Daily High1.3378
Previous Daily Low1.3329
Previous Weekly High1.3255
Previous Weekly Low1.3147
Previous Monthly High1.3387
Previous Monthly Low1.3093
Daily Fibonacci 38.2%1.3359
Daily Fibonacci 61.8%1.3348
Daily Pivot Point S11.3329
Daily Pivot Point S21.3304
Daily Pivot Point S31.328
Daily Pivot Point R11.3378
Daily Pivot Point R21.3403
Daily Pivot Point R31.3427

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

More from Matías Salord
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.