Forex: USD/CAD bounces at 1.0885 and rises above 1.0950
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DiggFXstreet.com (Barcelona) – After falling around 85 pips on the back of the August US unemployment report from 1.0970, USD/CAD has bounced at 1.0885 to previous levels close to 1.0980. Currently the pair is trading around 1.0945/55, 0.65% below today's opening price action.
U.S. non farm payrolls have declined by 216,000 in August, a softer decline then the 276,000 revised drop seen in July, although the Unemployment rate has soared to 9.7%, the highest since 1983. Dollar is moving nervously against majors immediately after the release of unemployment figures.
Canada has published a net change in employment of 27.000 new jobs created in August, better than 7.400 jobs losses in the July net change. Market expected a decline of 20.000 jobs in August. Unemployment rate in Canada has risen to 8.7% in August from 8.6% in July, despite it is a increase, data shows a better number than 8.8% expected by market.
Nick Nasad, currency analyst at CMS Forex, comments: “During August, the USD/CAD pivoted from a strong downmove to counter-rally, and then establish a bit of a sideways range. between 1.11 and 1.07. We failed to move above that 1.11 area in this week's trading, and have broken the upward sloping support levels using the recent lows within the most recent upswing.”
Nasad concluded: “If there is the right bit of risk appetite, the pair may move to retest its low,. We had a positive Canadian employment release which should help Loonie strength. Right now, with the greenback faring well following the release, we saw a pretty strong move back in favor of the greenback after the pair had tested teh area below 1.0900.”
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