USDCAD  Overnight Range   1.3011-1.3171                       

The FX markets are as hot as today’s Toronto temperatures thanks to another blow-out US nonfarm payrolls report.  The US dollar roared across the board on news of a 255,000 gain in NFP, blowing away the 180,000 forecast.  Average Hourly Earnings ticked higher, to 0.3% from 0.2%, adding fuel to the rally. EURUSD plunged to 1.1080 from 1.1160, Sterling dropped to 1.3060 from 1.3170 and the Canadian dollar got annihilated.

USDCAD soared to 1.3171 from 1.3018 when Statistics Canada posted a 31,200 drop in Canadian employment and a 0.1% bump in the unemployment rate. The report was made even uglier with by a 71,000 decline in full-time employment.

However, the Canadian report should be taken with a grain of salt.  The data is suspect due to the Alberta wildfires and StatsCanada is known for producing wonky employment reports.

There wasn’t much happening in Asia or Europe.  Both markets were content to stay close to home and await today’s US data.

WTI oil prices are flirting with $42.00/b which if the level manages to hold may limit USDCAD gains above 1.3200

USDCAD technical outlook.

USDCAD technicals are bearish while trading below 1.3040.  A decisive break below support at 1.2990-1.3000 will extend losses to 1.2920.  A break above 1.3040 shifts the focus back to 1.3150. Longer term, the 1.2650-1.3250 trading band since mid-May remains intact.  The failure to extend gains at the top warns of another visit to the bottom.

For today, USDCAD support is at 1.2990 and 1.2930.  Resistance is at 1.3040 and 1.3080

Today’s Range 1.3110-1.3180

Chart: USDCAD daily