USD/CAD plummets below 1.3700 after US/Canada Employment data


  • USD/CAD falls vertically below 1.3700 after the release of the US/Canada labor market data.
  • US/Canada job growth slowed in October more than expected.
  • Slower job growth may allow Fed policymakers to advocate for concluding the rate-tightening campaign.

The USD/CAD pair fell sharply below the round-level support of 1.3700 after the release of the United States/Canada labor market data. The Loonie asset witnesses an intense sell-off as the US Dollar Index (DXY) drops swiftly on the soft US Nonfarm Payrolls (NFP) report for October.

The US Bureau of Labor Statistics (BLS) reported that job hiring was slow against expectations. US employers hired 150K job seekers, lower than expectations of 180K and 297K job additions in September (revised lower). The jobless rate rose to 3.9% from 3.8% expectations and the former reading.

Monthly Average Hourly Earnings grew at a slower pace of 0.2% against 0.3% growth in September. The annual wage growth was 4.1%, higher than expectations of 4.0% but dropped from 4.2% reading a year ago. Slower job growth may allow Federal Reserve (Fed) policymakers to advocate for concluding the rate-tightening campaign.

Meanwhile, investors await the US ISM Services PMI for October, which will be published at 14:00 GMT. The Services PMI, which represents the service sector that accounts for two-thirds of the US economy is seen dropping to 53.0 against the former reading of 53.6.

On the Canadian Dollar front, the laborforce was expanded by 17.5K employees against expectations of 22.5K and September’s reading of 63.8K. The Unemployment Rate rose to 5.7% versus expectations of 5.6% and the former reading of 5.5%. A soft labor market report may allow Bank of Canada (BoC) policymakers to keep interest rates unchanged at 5% in the monetary policy meeting next month.

USD/CAD

Overview
Today last price 1.3671
Today Daily Change -0.0069
Today Daily Change % -0.50
Today daily open 1.374
 
Trends
Daily SMA20 1.3721
Daily SMA50 1.3629
Daily SMA100 1.3465
Daily SMA200 1.3489
 
Levels
Previous Daily High 1.386
Previous Daily Low 1.3736
Previous Weekly High 1.3881
Previous Weekly Low 1.3661
Previous Monthly High 1.3892
Previous Monthly Low 1.3562
Daily Fibonacci 38.2% 1.3783
Daily Fibonacci 61.8% 1.3812
Daily Pivot Point S1 1.3697
Daily Pivot Point S2 1.3654
Daily Pivot Point S3 1.3573
Daily Pivot Point R1 1.3821
Daily Pivot Point R2 1.3902
Daily Pivot Point R3 1.3945

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD turns south toward 0.6750 after Chinese data dump

AUD/USD turns south toward 0.6750 after Chinese data dump

AUD/USD has come under renewed selling pressure, turning south toward 0.6750 after China's GDP missed estimates with 4.7% YoY in Q2 2024. Mixed activity data from China and a broad US Dollar rebound add to the weight on the pair, as risk sentiment stays tepid. 

AUD/USD News

EUR/USD stays weak below 1.0900 as US political violence boosts US Dollar

EUR/USD stays weak below 1.0900 as US political violence boosts US Dollar

EUR/USD is on the defensive below 1.0900 in the Asian session on Monday. The pair edges lower amid risk aversion on the Trump rally shooting, which has put a bid under the US Dollar. The focus remains on US politics and Fedspeak looking ahead, 

EUR/USD News

Gold edges lower near $2,400 on US Dollar rebounds

Gold edges lower near $2,400 on US Dollar rebounds

Gold price trades in negative territory near $2,405 on Monday during the early Asian session. The hotter-than-expected Wholesale price inflation in the United States for June weighs on the precious metal. 

Gold News

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

Read more

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

Fist in the air and on with the fight that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures