USD/CAD (current price: 1.3015)
The U.S. Dollar got slightly lower following the release of the Employment Report on Friday. Non-Farm Payrolls rose by more than expected in January, coming in at 227,000. The worse than expected Average Earnings number put pressure in the Dollar after the cautions FED outlook concerning the economy. The ISM Non-manufacturing PMI was also below the consensus estimate. The Canadian Dollar was helped by the mixed U.S. numbers and the rally in commodities, as the cross trades near the widely watched 1.30 level.
Our assessment: USD/CAD is still in a declining short-term trend channel after dipping below the 200-day Moving Average. Resistance is ahead at 1.3175, with the prior lows providing support at 1.2950.
