USD/CAD stays in positive territory around 1.2180 after US and Canada jobs reports

USD/CAD fluctuated wildly in early American session on Friday.
Nonfarm Payrolls in US rose only by 266K in April.
Unemployment Rate in Canada rose to 8.1% from 7.5%.

Eren Sengezer FXStreet

The USD/CAD pair fell to a session low of 1.2150 in the early American session but quickly reversed its direction. As of writing, the pair was up 0.25% on a daily basis at 1.2178.

USD and CAD both lose interest on Friday

The monthly data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls in the US increased by 266,000 in April. This reading missed the market expectation of 978,000 by a wide margin and triggered a USD selloff. At the moment, the US Dollar Index is down 0.4% at 90.52.

Commenting on the US jobs report, "even if the pandemic skewed seasonal adjustments, the picture is still far gloomier than earlier estimated," noted FXStreet analyst Yohay Elam. "If the economy was overheating, the shortage in some raw materials and skill mismatches – vacancies are high but those out of work are not a good fit – may explain the slow hiring. Another explanation would be that America is not accelerating as fast as expected."

Despite the broad-based USD weakness, USD/CAD remained relatively resilient as the CAD struggled to find demand after the dismal Canadian labor market report. Statistics Canada reported on Friday that the Unemployment Rate in Canada rose to 8.1% from 7.5% in March with the Net Change in Employment coming in at -207K.

Later in the session, the Ivey PMI data from Canada will be looked upon for fresh impetus.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2175
Today Daily Change	0.0025
Today Daily Change %	0.21
Today daily open	1.215

Trends
Daily SMA20	1.2426
Daily SMA50	1.2516
Daily SMA100	1.2624
Daily SMA200	1.288

Levels
Previous Daily High	1.2289
Previous Daily Low	1.2142
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2198
Daily Fibonacci 61.8%	1.2233
Daily Pivot Point S1	1.2098
Daily Pivot Point S2	1.2047
Daily Pivot Point S3	1.1952
Daily Pivot Point R1	1.2245
Daily Pivot Point R2	1.234
Daily Pivot Point R3	1.2391

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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