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USDCAD Backtracks Following Employment Reports

Technical Bias: Neutral


  • USDCAD treading 1.21000 following jobs data.
  • US employment rises 223,000 in April, unemployment rate falls to 5.4%.
  • Canada sheds nearly 20,000 jobs in April, unemployment holds steady at 6.8%.

The USDCAD backtracked slightly on Friday, as investors digested divergent jobs reports from the United States and Canada.

The USDCAD was treading the 1.21000 line on Friday morning, down 0.1 percent. The pair fell by as much as 0.2 percent immediately after the jobs reports, which were both released at 8:30 ET. Immediate support is located around 1.2135. A rally above this level could leads to a test of 1.2200, which would pave the way for a broader upward progression. On the downside, initial support is located at 1.2046, the daily low.


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US Employment Rebounds in April

US employment rebounded in April, as the unemployment rate fell to a new seven-year low. Nonfarm payrolls rose by 223,000 last month following a downwardly revised gain of 85,000 in March.

The unemployment rate declined 0.1 percentage point to 5.4 percent.

The Labor Department said job growth averaged 191,000 over the past three months, much lower than the 2014 average.

Canada Sheds 20,000 Jobs in April

Employment in Canada declined more than forecast in April, as gains in full-time work were more than offset by declines in part-time employment.

Employment fell by 19,700 in April following a gain of 28,700 in March, Statistics Canada reported on Friday. A median estimate of economists called for a decline of 5,000.

Total employment increased by 139,000 or 0.8 percent in the 12 months through April, with all of the gains in full-time jobs. The number of hours worked increased by 0.9 percent over the same period.

The unemployment rate held steady at 6.8 percent for the third consecutive month.

Employment declined in construction, retail and wholesale trade and information/culture/recreation. Employment increased in manufacturing and business/building/other support services.

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