The USD/CAD pair dipped to 1.3980 from 1.4020 yesterday also weighed by the overall weaker US Dollar. Canada’s Employment was just as, if not more dismal than that of its southern neighbour. According to Royal Bank of Canada, the plunge in Employment to 1.01 million in March was the largest dating back to 1976 and were more than twice the total job losses in the 2008/2009 Global Financial Crisis. The Jobless rate soared to 7.8% from 5.6% in February and worse than forecasts of 7.4%. Brent crude oil prices ended lower at USD 33.10 (USD 34.50) despite Russian assurances that talks with Saudi Arabia were going well on cutting production.
The main driver lower for USD/CAD was the soft US Dollar. We highlighted yesterday that speculators turned long CAD bets to +CAD 7,316 contracts from the previous week’s -CAD 29,245. Which is a huge turnaround. Market positioning will be a factor this long weekend as Canada also will be away in observance of Good Friday and Easter Monday.
Immediate support for USD/CAD lies at 1.3970 followed by 1.3940. Immediate resistance can be found at 1.4030 followed by 1.4080 and 1.4130. Look for a likely range ahead of 1.3970-1.4170, prefer to buy any dips.