Canada gained 50.7K jobs in February, far above expectations. The unemployment rate remained at a low of 7%. Early expectations stood on a gain of 7.8K jobs after last month’s drop of 21.9K. The unemployment rate was expected to tick up from 7% to 7.1%.
USD/CAD fell under 1.03 towards the release and is now plunging towards 1.0250.
It’s important to note that the Canadian data is published at the same as the US Non-Farm Payrolls, so the price action is a reaction to both sides of the currency pair, on key figures.
The US gained 236K jobs, much better than expected.
The Canadian dollar is practically the only currency that gained against the US dollar after the Non-Farm Payrolls. The euro, yen, pound, Aussie, kiwi and even the Swiss franc are all falling.
Important lines are: 1.0440, 1.0360, 1.03, 1.0250, 1.02 and 1.01. For more lines, see the USD/CAD forecast.
