USMCA Agreement Reached USDCAD Unfazed

USDCAD consolidates around the 100-day moving average after the strong rebound last Friday from monthly lows boosted by strong NFP data. The U.S. Nonfarm Payrolls reported at 266K, beating forecasts of 180K in November while the Unemployment Rate came in at 3.5% below expectations of 3.6%. Today the United States Nonfarm Productivity came in at -0.2%, below forecasts of -0.1% in the third quarter. The United States Redbook Index (MoM) declined to -3.6% on December 6 from previous 0.4% the yearly reading also came down to 5% on December 6 from the previous 7.9%.

Positive news on trade that the United States, Mexico and Canada have reached an agreement over labour, steel and aluminium in the USMCA trade agreement helps the Canadian dollar.

On the interest rates front, the Bank Of Canada kept it’s benchmark interest rates steady as widely expected by analysts. The Bank Rate now stands at 2% and the deposit rate is 1.5%.

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USDCAD Struggles to Hold the 100-day MA

USDCAD trades 0.01% higher at 1.3239 struggling to hold above the 100-day moving average to keep the positive momentum.

USDCAD has established an intraday support at 1.3223 the daily low,  in case the pair breaks below that level might test the next support at 1.3216   the 50-day moving average.  Next level for bears to watch is the 1.3170 low from December 6th.

On the upside first resistance for USDCAD stands at 1.3248 the daily top while the next resistance stands at 1.3264 the high from yesterday’s session. If we have amove above that level the next target to the upside is the 1.3277 the 200-day moving average.More content