USD/CAD (current price: 1.3388)
The pair spiked higher on Friday following the release of the Employment Reports in the U.S. and Canada, despite the bullish numbers in the latter. Canadian Payrolls rose unexpectedly by 43,900 while the Unemployment rate was in line with expectations at 7.0%. The Ivey PMI was much better than expected with 59.7, also helping the CAD on Friday. The Loonie remained under pressure because of the weakness in oil, although this morning’s bounce might mean that the 1.34 resistance level is still strong, despite the recent tests by the pair.
Our assessment: USD/CAD is still below the all important 1.34 line following a choppy week, with the long-term trend still being neutral, despite oil’s decline and the global correction in risk assets.
