USD/CAD: Canadian Dollar Improves After Stellar Employment Numbers
Kenny Fisher | Feb 08, 2019 09:45
USD/CAD started the Friday session quietly, but has posted losses in the North American session. The pair is currently trading at 1.3255, down 0.40% on the day. On the release front, there are no U.S. events. The Canadian economy created 66,800 jobs in January, crushing the estimate of 6,500. The unemployment rate edged up to 5.8% in January, compared with 5.7% a month earlier.
It’s been a rough week for the Canadian dollar, which has slipped 1.2%. Will the slide continue next week? Investors are increasingly concerned that the U.S and China will not be able to reach a trade deal. On Thursday, U.S. President Donald Trump said that he had no plans to meet with Chinese President Xi before March 2, when further U.S. tariffs are scheduled to be imposed against China. This has raised concerns that a trade deal will not be reached prior to the March 2 deadline. Trump’s remarks chilled risk appetite, sending U.S. equity markets and the Canadian dollar lower on Thursday.
The Bank of Canada appears to have taken page out of the Federal Reserve’s playbook, and is expected to ease monetary policy this year after aggressively raising rates in 2018. On Wednesday, BoC Deputy Governor Tim Lane said that Canada’s fundamentals were strong and unemployment was at historically-low rates. However, Lane noted that the Canadian dollar was under pressure due to lower oil prices, a soft housing market and a decline in business investment due to uncertainty over U.S. trade policies.
USD/CAD Fundamentals
Friday (February 8)
- 8:15 Canadian Housing Starts. Estimate 206K. Actual 208K
- 8:30 Canadian Employment Change. Estimate 6.5K. Actual 66.8
- 8:30 Canadian Employment Rate. Estimate 5.7%. Actual 5.8%
*All release times are EST
*Key events are in bold
USD/CAD for Friday, February 8, 2019
USD/CAD, February 8 at 9:05 EST
Open: 1.3308 High: 1.3329 Low: 1.3232 Close: 1.3255
USD/CAD Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.3049 | 1.3125 | 1.3200 | 1.3290 | 1.3383 | 1.3445 |
Get The App
USD/CAD ticked higher in the Asian session and was flat in European trade. The pair has posted losses in North American trade
- 1.3200 is providing support
- 1.3290 is the next resistance line
- Current range: 1.3200 to 1.3290
Further levels in both directions:
- Below: 1.3200, 1.3125 and 1.3049
- Above: 1.3290, 1.3383, 1.3445 and 1.3547
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.