USD/CAD surges to near 1.4100 after US-Canada Employment data

USD/CAD jumps to near 1.4100 after the release of the US-Canada employment data for November.
US NFP came in higher-than-expected and the wage growth remained steady.
Canadian job growth remained robust and the jobless rate accelerated sharply.

Sagar Dua FXStreet

The USD/CAD pair advances to near the round-level resistance of 1.4100 after the release of the labor market data for November from both economies: the United States (US) and Canada.

The US Nonfarm Payrolls (NFP) report showed that 227K fresh workers were added to the labor force, higher than estimates of 200K. The Unemployment Rate accelerated to 4.2%, as expected, higher than the former release of 4.1%.

Meanwhile, Average Hourly Earnings rose steadily by 0.4% and 4% on monthly and annual basis, respectively.

The probability for the Federal Reserve (Fed) to cut interest rates by 25 basis points (bps) has increased sharply to 90% from 71% recorded on Thursday after the release of the US NFP report, according to the CME FedWatch tool.

On the Loonie front, fresh labor addition remained robust in November, while the jobless rate jumped to a record high since September 2021. The economy added 50.5K workers, significantly higher than estimates of 25K and the former release of 14.5K. The Unemployment Rate rose to 6.8%, faster than estimates of 6.6% and the prior reading of 6.5%.

A higher jobless rate would prompt expectations of more outsize interest rate cuts by the Bank of Canada (BoC). The BoC has already reduced its key borrowing rates by 125 basis points (bps) to 3.75%.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold defends 200-day SMA, rises toward $4,500

Gold is attempting a tepid recovery toward $4,500 on Thursday, as renewed optimism in the Mideast geopolitical front calms market nerves. This cautious optimism across Asian markets weighs on Oil prices, and diminishes the US Dollar’s safe-haven appeal, helping Gold stage a decent comeback from the weekly low of $4,424.

Hyperliquid: ETF demand, capital rotation fuel HYPE rally as Bitcoin melts

Hyperliquid price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.