- USD / CAD was under modest downward pressure early in the US session.
- The US dollar index falls into negative territory after the nonfarm payroll report.
- The unemployment rate in Canada rose to 8.2% as expected.
After climbing to a daily high of 1.2134 during the European session, the pair USD / CAD it lost its traction and was last seen losing 0.13% on the day at 1.2083.
DXY Turns South After May US Jobs Report
Renewed USD weakness appears to be forcing USD / CAD to push lower in the last hour. Data released by the US Bureau of Labor Statistics on Friday revealed that non-farm payrolls in the US increased by 559,000. This reading beat the market expectation of 650,000 and weighed on the dollar. Further details from the release revealed that the Unemployment Rate dropped to 5.8% from 6.1% and the Labor Force Participation Rate changed little to 61.6%.
Reflecting the negative impact of these figures on the USD, the US Dollar Index was down 0.27% on the day to 90.25.
On the other hand, Statistics Canada reported that the unemployment rate in Canada rose to 8.2% in May as expected. The net change in employment reached -68,000 and disappointed the market expectation of -20,000. However, the USD market valuation remains the main driver of USD / CAD movements.
Later in the session, Canada’s Ivey Purchasing Managers Index and US factory orders data will be included in the US economic agenda.
Technical levels
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