- USD / CAD fell sharply on the initial reaction to the disappointing US NFP data.
- The US Dollar Index remains above 92.00 after an immediate drop.
- Focus shifts to ISM services PMI data for August.
After spending the first half of the day moving sideways around 1.2550, the pair USD / CAD it came under heavy downward pressure and hit its lowest level since Aug. 11 at 1.2493 before making a modest rebound. At time of writing, the pair was down 0.2% on the day at 1.2525.
Eyeing ISM Services PMI After Jobs Report
Data released by the US Bureau of Labor Statistics on Friday revealed that US nonfarm payrolls increased by 235,000 in August. This reading disappointed the market expectation of 750,000 by a wide margin and triggered a sell-off of USD. With the initial reaction, the US Dollar Index fell below 92.00 for the first time in a month, but managed to stabilize on the day near 92.20.
On a positive note, the Unemployment Rate fell to 5.2% from 5.4% and the Labor Force Participation Rate remained stable at 61.7% during that period.
Later in the session, the ISM Services PMI report for August will be analyzed for fresh momentum. Meanwhile, US stock index futures erased a large chunk of their daily gains after the August jobs report, suggesting that the US dollar could benefit from the market’s cautious stance in the second half of the day.
Technical levels
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