- The dollar rises strongly after the data, the DXY reaches its highest level in almost a month.
- USD/CAD bounces from 1.3475 towards 1.3600.
- The US and Canadian employment reports will be released on Friday.
The USD/CAD It rose more than a hundred points on Thursday buoyed by a stronger US dollar. The pair reached a high during the American session at 1.3587. It remains close to the high with a firm bullish tone.
Despite falling against the dollar, the Loonie is doing better on Thursday. AUD/CAD is at two-day lows, while NZD/CAD fell to its lowest since late November weakened by deteriorating market sentiment. The Dow Jones falls 1.20% and the Nasdaq 1.28%. Crude oil prices rise, but far from peaks.
USD/CAD could find resistance around the 1.3610/15 zone and then 1.3650. The key level on the upside is at 1.3700. A daily close above would point to further strength. On the downside, the pair has bounced from the relevant support at 1.3470/80; a daily close below would clear the way towards 1.3400.
The dollar rises after the US data
Data released Thursday showed private payrolls increased by 235,000 in December, above the market consensus of 150,000, according to ADP. The weekly jobless claims report showed a drop in initial claims to 204,000, the lowest figure since September. The December reading for the S&P Global Services PMI was revised up to 44.7 from 44.4.
The dollar strengthened after knowing these data. The DXY reached its highest level since December 8 above 105.00. US Treasury yields also rose, hitting multi-day highs across the curve. The Nonfarm Payrolls report will be released on Friday. Market consensus points to an increase of 200,000 people. The numbers could trigger further volatility.
We report that employment will increase by 8,000 people in December, as the Canadian job market begins to cool. This should push the unemployment rate back to 5.2%, although we expect full-time employment to be the determining factor in a context of labor shortages. We also expect wages to rise to 5.5% yoy helped by moderate base effects, while hours worked should post a modest increase,” TD Securities analysts explained.
technical levels
USD/CAD
Overview | |
---|---|
Last price today | 1.3573 |
Today I change daily | 0.0091 |
today’s daily variation | 0.67 |
today’s daily opening | 1.3482 |
Trends | |
---|---|
daily SMA20 | 1.3598 |
daily SMA50 | 1.3525 |
daily SMA100 | 1.3465 |
daily SMA200 | 1.3138 |
levels | |
---|---|
previous daily high | 1,368 |
previous daily low | 1.3476 |
Previous Weekly High | 1.3612 |
previous weekly low | 1.3484 |
Previous Monthly High | 1.3705 |
Previous monthly minimum | 1.3385 |
Fibonacci daily 38.2 | 1.3554 |
Fibonacci 61.8% daily | 1.3603 |
Daily Pivot Point S1 | 1.3412 |
Daily Pivot Point S2 | 1.3342 |
Daily Pivot Point S3 | 1.3208 |
Daily Pivot Point R1 | 1.3616 |
Daily Pivot Point R2 | 1,375 |
Daily Pivot Point R3 | 1,382 |
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.