USD/CAD – Looked to US Payrolls, Meantime Canada’s Jobless Doubled

Against the Canadian Loonie, the US Dollar slid 0.45% to 1.3930 from Friday’s 1.3985 as traders focussed on the US Job losses, driving USD/CAD lower. Canada’s Employment showed Job Losses of just under 2 million (1.994 million) in April from March’s Job loss of 1.01 million. The Unemployment rate in Canada increased to 13.0% from 7.8%.  Although both reports were slightly better than median forecasts (Jobless expected, -4.0 million, Jobless rate expected 18.0%), they nearly doubled the previous records in March.

USD/CAD saw little movement in muted traded compared to the past few days. The US Dollar slipped to 1.39006 overnight before rallying to close at 1.3932. Overnight high traded was 1.39903. Expect the USD/CAD to consolidate around current levels with immediate resistance formed at 1.3970 followed by 1.4000. Immediate support can be found at 1.3900 and 1.3870. Look for a likely trading range today of 1.3900-1.4000. Prefer to buy USD dips.


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