Forex: USD/CAD up to 9-week high after employment reports

on Nov 8, 2013
Updated: Oct 21, 2019

**, Friday 8 November:**

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The US and Canada both reported earlier today stronger-than-expected job growth, however the market had been significantly more cautious about the results from the States and as a result the USD/CAD rose to a 9-week high of 1.0503 on the good news.
The US Non-farm Employment Change for October beat the market consensus for 120,000 with a solid number of 204,000 payrolls. Furthermore, the Bureau of Labour Statistics reported upward revisions of previous readings, totalling 60,000. Several FOMC member official have previously said that they would want to see the US economy adding more than 200,000 jobs per month before reducing the pace of the Fed’s asset purchases programme. Hence, October’s robust payroll creation immediately sparked speculation of an earlier QE taper and boosted the greenback.

The US unemployment rate came out in line with expectations for a one-tenth upswing to 7.3 percent. The majority of economist consider the rise as a one-off jump due to the government shutdown that is likely to revert in November.
In Canada, employment figures during October increased by 13,200, well above September’s gain of 11,900 and bettering the forecast for 12,700. The jobless rate stayed unchanged at 6.9 percent, while the market consensus was for an increase to 7.0 percent.

Following the North American labour market reports, the USD/CAD rallied to 1.0503, which is the highest level for the quote since 5 September. However, the bulls have backed off a little bit since then as the currency pair touched its resistance, projected from the two-year top of 1.0609. The Relative Strength Index on the 4-hour chart is in a steady uptrend, holding above its support extended from 10 September, signifying bullish momentum.

The recently-released University of Michigan US Consumer Sentiment for November checked in at 72.0, falling short of the market consensus for improvement to 74.6 from October’s 73.2. Notably, the expectations component dropped from 62.5 to 62.3, which is its lowest level since November 2011. The current conditions index declined to a 2013 bottom of 87.2, whereas pundits were predicting a marginal gain to 90.0 from October’s 89.9.
Right now, the USD/CAD is trading around 1.0495, up 0.3 percent intraday.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
CAD Forex