He USD/CAD it has fallen close to 60 pips after learning that Canada created 150,000 jobs in January, ten times more than the 15,000 expected by the market. The pair, which started the day hitting a four-day high at 1.3472 late in the Asian session, has broken below 1.3400, extending its decline to two-day lows at 1.3361, with a total loss of 110 pips.
He strong Canadian employment data has strengthened the CAD. This is the fifth consecutive month that the Canadian labor market has expanded, and it is also the month with the highest job creation in the last eleven, specifically since February 2022. The unemployment rate has remained at 5%, improving the estimated 5.1%, while salaries have grown by 4.5% year-on-year, below the 4.7% of the previous month.
He Dollar Index (DXY)For its part, it reached daily highs at 103.54 at European noon, but in the last hour its momentum has lost some strength, retreating towards the 103.30 area.
Traders in the pair are now waiting to digest the data and will keep a close eye on the University of Michigan consumer confidence data for February, whose five-year inflation expectations component is also closely watched by the Fed.
USD/CAD Levels
USD/CAD is currently trading above 1.3375, losing 0.64% on the day. If we continue to lose ground, the level 1.3360, minimum of February 8 and of the current week, will be the first support to break. Below wait the psychological level 1.3300 and 1.3262floor of February 2 and of the last three months.
To the upside, the pair would need to rally above 1.3400 to regain bullish momentum in the direction of 1.3475ceiling for the month of February reached on Monday the 6th. The area awaits higher up 1.3500 and 1.3520maximum of February 19.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
