News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/P1iOONG90N
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/62bGLvt8fE
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/A0sIYo2iP1
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD https://t.co/yxwquL1btp https://t.co/RtWjlN6kpv
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi41lETt https://t.co/FyZuHNzsU3
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
USD/CAD Soars to a 4-Year High on Canadian Employment Declines

USD/CAD Soars to a 4-Year High on Canadian Employment Declines

Benjamin Spier, Technical Strategist

Talking Points:

  • Canadian net employment declined for the first time in five months
  • Canadian unemployment rate rose back to an annual high
  • USD/CAD rallies to a 4-year high

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The Canadian Dollar fell to a four year low against the US Dollar, as the unemployment rate returned to an annual high in December.

Net Canadian employment fell by 45.9 thousand jobs in December, disappointing expectations for 14.1 thousand gains in jobs and down from the 21.6 thousand gains in jobs seen in November. Net employment fell for the first time in five months in December, and the decline was the worst in nine months, according to Statistics Canada.

The Canadian unemployment rate rose back to the 12-month high of 7.2% in December, disappointing expectations for unemployment to remain at 6.9%. The 6.9% unemployment rate in November, which was first seen in September, was the lowest unemployment rate in five years. The participation rate was unchanged at 66.4% in December, remaining at the lowest level in more than a decade.

Bank of Canada Governor Poloz said earlier this month that he is most worried about inflation underperformance, and the comment further explained the BoC’s decision last October to no longer mention the possibility of a rate increase. Regarding economic performance, the BoC also said in December that the economy won’t reach full capacity until the end of 2015. Therefore, worse than expected employment may add to pressures for accommodative monetary policies, which is why the Canadian Dollar declined on the release today.

USD/CAD rose 60 pips to a new 4-year high at 1.0946 following the release, which was particularly impressive considering the US Dollar was falling against most currencies at that time because of a simultaneous disappointing US NFP’s release. The third monthly pivot resistance point sits just a few pips below the key 1.1000 level, which may provide resistance.

New to Forex? Watch this video

USD/CAD 1-Minute: January 10, 2014

USDCAD_Soars_to_a_4-Year_High_on_Canadian_Employment_Declines__body_Picture_1.png, USD/CAD Soars to a 4-Year High on Canadian Employment Declines

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES