USDCAD Jumps to Monthly Highs on Weak Canadian Employment Data

USDCAD trades 0.40% higher at 1.3226, making fresh daily high after Canada Net Change in Employment came in at -1.8K below expectations of 15.9K in October. Canada Unemployment Rate came in at 5.5% in line with expectations for October. The Canada Building Permits (month over month) came in at -6.5% below forecasts (-2%) in September.

Crude oil is under pressure today giving up 43% at 56.33 just to add extra pressure to Canadian dollar.

Bank of Canada the previous week kept interest rates unchanged at 1.75% as widely expected by markets. BoC will possibly wait until the Q1 next year before easing. Loonie the last month supported by high crude oil price, Canada’s main export product, and higher interest rates.

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USDCAD Technical Analysis Levels

USDCAD jumps to daily high breaching the 50 and 100-day moving average after the disappointing Canadian unemployment report. The pair outlook has turned bullish now and traders focus to the upside, where the first resistance stands at 1.3230 the daily top, then at 1.3299 the high from October 11th.

On the downside, USDCAD first support stands at 1.3209 the 50-day moving average and then at 1.3170 the daily low, a break below might drive prices down to 1.3075 the low from October 30, while more bids will emerge at 1.3137 the low from November 6th.More content