The Canadian Dollar was the most volatile currency of the mostly flat Friday session. The strong oil price and stable precious metals helped the commodity currency that was also pushed higher by favorable economic news. The Canadian Employment Report was much stronger than expected, as the local economy added 40,500 jobs versus the consensus estimate of 10,400. The Unemployment Rate also ticked down by 0.2% to 7.1%, and that was enough for the Loonie to gain more than 1.2% on the U.S. Dollar. USD/CAD got back below 1.30, but it will be interesting to see how negative international trends affect the pair this week.
Our assessment: The pair erased almost all the gains of the last 7 sessions in one day, but the momentum indicators remain slightly oversold, and global developments also favor further correction.
