The Canadian dollar is advancing against the US dollar, enjoying the latter’s weakness more than anything else. The choppy markets are not certain that the Fed will taper bond buys soon enough, and there is a lot of volatility and jumpy action in the markets.
USD/CAD is trading at 1.0157, the lowest since May 16th. The road to parity is not that short though.
It broke below 1.0066 that served as support in the past few days. Here is how it looks on the daily chart:
USD/CAD moving lower – click image to enlarge
The pair bottomed out on May 9th at 1.0014, just 14 pips above parity. Before challenging the roundest number, USD/CAD could find support at 1.01, which worked as both support and resistance in the past. Below parity, support appears at 0.9930.
The Canadian dollar enjoyed an excellent jobs report: the economy gained no less than 95K jobs in May. Even if we discount volatility in these reports, the outcome is still excellent. The unemployment rate dropped.
This report is also having a positive impact on the loonie, even if we are 5 days after the event.
For more on USDCAD, see the Canadian dollar forecast.
