USD/CAD Rips After Positive US and Canadian Labor Data
Despite strong Canadian employment data which strongly beat Bloomberg News survey expectations (-0.4K actual; -7.5K expected; +95.0K prior), the USDCAD spiked significantly higher. While this is a positive sign for the Canadian economy, this event was heavily overshadowed by the US Nonfarm Payroll print (+195K actual; +165K Bloomberg News survey expected). Fundamentally, a strengthening US economy is additionally positive for Canada because the two countries are large trading partners.
The Canadian unemployment rate remains at 7.1%, in line with Bloomberg News survey expectations.
USDCAD 1-minute Chart: July 5, 2013
Charts Created using Marketscope – prepared by Kevin Jin
As stated, the USDCAD shot up over +60 pips upon Canadian and US data release. The pair traveled as high as $1.0608 (+95 pips) before being turned lower. The pair remains at 1.0565 at the time of writing, still net +52 pips higher than pre-release.
--- Written by Kevin Jin, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.