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USD/CAD: Loonie Plummets On Weaker Jobs Report, But Then Pairs Losses

Published 2018-02-09, 09:28 a/m
USD/CAD
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Canada January net jobs -88,000 from December

Canada January net jobs forecast At +10,000

Canada January full-time jobs +49,000; part-time -137,000

Canada January Average Hourly Wages +3.3% From Year Ago

Canada Labor Force -73,700 in January from December

Canada January Participation Rate At 65.5% Vs 65.8% in December

  • USD/CAD for Feb. 8-9, 2018.
  • Canada’s unemployment rate ticked up last month after hitting a 10-year low in December, as both the public and private sectors shed workers.

    The Canadian economy lost a net -88k jobs in January on a seasonally adjusted basis. The market expectations were for an increase in employment of +10k.

    Canada’s unemployment rate ticked a tad higher to +5.9% in January, up from a revised reading of +5.8% in December.

    The loonie took it on the chin immediately, moving from C$1.2601 to an intraday dollar high of C$1.2694. The CAD has since pared all of those losses and then some, trading atop of C$1.2600.

    The CAD bears will have been disappointed with the initial price action as there were looking for better USD levels to sell their longs. A plethora of dollar sell orders had been scattered atop of the psychological C$1.2700 handle.The USD/CAD is trading lower on the day at C$1.2585.

    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.

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