USD / CAD extends pullback from month-long highs on employment data

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  • The dollar rises but then recedes after better-than-expected US employment data.
  • USD / CAD falls to new lows but loonie loses strength against other rivals.

USD / CAD fell to 1.2440, following Canadian and US employment data. It then bounced but again approached lows on a weak dollar. In this way, the pair falls back after having reached highs in a month at 1.2479 hours ago.

Data from the US beat expectations, with an increase in nonfarm payrolls of 531,000 higher than the expected 425,000. The dollar rose immediately after the data, but then lost momentum.

In Canada, the net change in employment in October was 31,200, also above expectations. The reaction to the loonie was not entirely positive as against the AUD and the NZD it fell slightly. Optimism in equity markets detracted from CAD relative strength.

The dollar enters the American session with positive data behind, but that is not seen as modifiers of expectations. This leads to a drop in Treasury yields, which together with the rise in the major stock indices, leaves the USD / CAD weak, and for now, on track to trim weekly losses.

Technical levels

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