- USD / CAD is trading near the day’s lows at 1.2770, despite disappointing data from the Canadian labor market.
- Strong crude oil prices, as well as widespread risk in the market environment, are also helping the loonie.
The USD / CAD it is trading near the day’s lows at 1.2770, despite the release of a very disappointing Canadian labor market report for January. In fact, the pair has been inspired by the weakness of the USD in the wake of a disappointing report on the January labor market in the United States. Both were released at 13:30 GMT, and since then, the USD / CAD has fallen from around 1.2800 to current levels, reversing a fleeting rally to record highs shortly after the 1.2830 data.
Strong crude oil prices, as well as a general risk appetite in the market (US stocks are likely to post a fifth consecutive day of gains), are also contributing to the downside, as does the fact that Canadian trade data (released at the same time as the employment report) was quite bullish. With the main event of the week (the labor market report) out of the way, the volatility of the USD / CAD is likely to now start to decline as traders head to the exit ahead of the weekend.
Technical Levels
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