USD/CAD Rallies Briefly on Mixed Employment Data from Canada

The USD/CAD currency pair today rallied higher briefly after the release of mixed data from both the Canadian and USA dockets. The release of the Canadian labour force survey and the US nonfarm payrolls buffeted the currency pair causing it to rally, then quickly decline.

The USD/CAD currency pair rallied higher briefly to hit a high of 1.2598, before quickly declining to hit a low of 1.2539, then retraced some of its losses.

The release of the Canadian net change in unemployment report for September by Statistics Canada caused the currency pair to rally higher as the figure came in at 10,000 versus the expected 12,000. The release of Canada’s unemployment rate data had a neutral effect on the currency pair as the print met market expectations by coming in at 6.2%. Later, the release of the Ivey Purchasing Managers Index drove the currency pair to new lows.

The release of US nonfarm payrolls data by the Bureau of Labor Statistics triggered the decline as it was recorded at -33,000, which was lower than the expected 80,000 increase. The US unemployment rate was lower than expected as it came in at 4.2% as compared to the 4.4% market consensus rate. The average hourly earnings also exceeded expectations by coming in at 2.9% on an annualized basis versus the expected 2.6%.

Given the empty US and Canadian dockets on Monday, the currency pair’s future performance is likely to be affected by global oil prices and political events in the USA.

The USD/CAD currency pair was trading at 1.2544 as at 14:51 GMT having dropped from a daily high of 1.2598. The CAD/JPY currency pair was trading at 90.00 having risen from a low of 89.64 earlier today.

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