Canada lost 6,600 jobs in September. This job loss is a disappointment. The unexpected drop in the unemployment rate from 8.1% to 8% didn’t help. USD/CAD is on the move.
USD/CAD is at 1.0230, rising above the 1.02 line and still far from 1.0280.
Early expectations stood on a gain of 10,700 jobs, significantly lower than last month’s nice 35,800 gain. The unemployment rate was expected to remain unchanged at 8.1%.
At the beginning of the week, USD/CAD gained and bounced at the 1.0280 resistance line. It then dropped on the dollar’s global’s weakness, went below 1.02 and even briefly below 1.01. This moved was also aided by the price of oil that topped above $84 – the highest level in 5 months.
But after reaching the lowest levels in two months, USD/CAD began rising once again, flirting with 1.02 – exactly where it started the week. Then came the job numbers.
The levels below are 1.01, 1 (parity) and 0.9930 – the year to date low. The levels above are 1.0280, 10350, 1.05 and 1.0680.
All in all, the loonie didn’t enjoy the dollar weakness as much as the other commodity currencies – the Aussie and the Kiwi.
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