USD/CAD rises toward daily highs boosted by the USD after employment reports
- US payrolls rise by 263K against expectations of 250K.
- Canada: Net change in employment during September 21K vs 20K.
- Loonie drops versus the dollar, although it hits fresh daily highs against most of its rivals.
- USD/CAD rises toward daily highs amid a stronger dollar.
The USD/CAD climbed from 1.3722 to 1.3760, matching the daily highs following the September employment reports from Canada and the US. Both showed better-than-expected numbers. The dollar rose across the board but also the loonie, although at a slower pace.
Positive reports in Canada and the US
The US official employment report showed non-farm payrolls rose by 263K in September, above the 250K expected. The unemployment rate dropped unexpectedly from 3.7% to 3.5%.
In Canada, net change in employment was positive by 21.1K during September, in line with market consensus. The unemployment rate fell from 5.4% to 5.2%, with the participation rate falling from 64.8% to 64.7%.
The greenback rose after the figures, boosted by higher US yields. The US 10-year yield is at 3.90%, while the 2-year reached 4.34%, a few points below the cycle highs.
Despite the dollar’s strength, so far USD/CAD remains in the range between 1.3760 and 1.3705, still undecided. The loonie printed fresh highs versus currencies like AUD, NZD, GBP and EUR after the report.
Technical levels
Author
Matías Salord
FXStreet
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.
