Canada lost 18.6K jobs in November. A gain of 18.1K jobs was expected, so this is a big disappointment. The unemployment rate was predicted to remain unchanged at 7.3% and it also fell short of expectations by rising to 7.4%.
The Canadian dollar strengthened towards the release. USD/CAD pierced through 1.01 and reached 1.0075. The publication sent the pair all the way up again to 1.0130.
Last month, Canada lost 54K jobs, erasing a big gain in September. A second month of losses is quite worrying. A rate cut in the upcoming months is possible.
Minor resistance is at 1.0143. 1.02 is an important level to watch if the pair continues rising. Support is at 1.0060, followed by USD/CAD parity.
For more on the loonie, see the USD/CAD forecast.
Markets are now tense towards the job figures from Canada’s southern neighbor. The US is officially expected to enjoy a gain of 120K, although this could be higher. In the current environment, good US job figures are negative for the dollar.
See the Non-Farm Payrolls preview for all the details about this volatile event.
