USD/CAD steadies below 1.2100 following NFP-inspired drop


Share:
  • USD/CAD fell sharply in the early American session.
  • Nonfarm Payrolls in US rose less than forecast in May.
  • Employment in Canada declined by 68,000, Unemployment Rate rose to 8.2%.

The USD/CAD pair rose to its highest level in a week at 1.2134 on Friday but turned south in the second half of the day. After dropping to a daily low of 1.2070, the pair seems to have gone into a consolidation phase and was last seen losing 0.15 on the day at 1.2083. For the week, the pair remains on track to close little changed.

Renewed USD weakness drags USD/CAD lower

Earlier in the day, the uninspiring May jobs report from the US caused the greenback to come under heavy selling pressure. The US Bureau of Labor Statistics reported Nonfarm Payrolls increased by 559,000, missing the market expectation of 650,000. Underlying details of the publication showed the Labor Force Participation edged lower to 61.6% from 61.7 in April.

With these figures suggesting that the Fed won't rush to start tapering discussions, the US Dollar Index erased a large portion of Thursday's gains and is currently losing 0.37% at 90.15. Moreover, the 10-year US Treasury bond yield is down nearly 4%.

On the other hand, Statistics Canada announced that Employment in Canada fell by 68,000 in May, compared to analysts' estimate of 20,000, and limited CAD's gains. Additionally, the Unemployment Rate ticked up to 8.2% from 8.1%.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2083
Today Daily Change -0.0025
Today Daily Change % -0.21
Today daily open 1.2108
 
Trends
Daily SMA20 1.2089
Daily SMA50 1.2321
Daily SMA100 1.2488
Daily SMA200 1.2764
 
Levels
Previous Daily High 1.212
Previous Daily Low 1.203
Previous Weekly High 1.2142
Previous Weekly Low 1.2029
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2086
Daily Fibonacci 61.8% 1.2065
Daily Pivot Point S1 1.2052
Daily Pivot Point S2 1.1996
Daily Pivot Point S3 1.1962
Daily Pivot Point R1 1.2142
Daily Pivot Point R2 1.2176
Daily Pivot Point R3 1.2232

 

 

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD bounces back, trades above 1.0860

EUR/USD bounces back, trades above 1.0860

EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future. 

EUR/USD News

GBP/USD turns north ahead of the weekly close, approaches 1.2700

GBP/USD turns north ahead of the weekly close, approaches 1.2700

GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell. 

GBP/USD News

Gold resumes advance and approaches record highs

Gold resumes advance and approaches record highs

Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data. 

Gold News

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report.  SOL price extends rally, yielding nearly 4% daily gains. 

Read more

Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside

Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside

TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.

Read more

Forex MAJORS

Cryptocurrencies

Signatures