Santa Claus came early for USDCAD bears. Statistics Canada reported Canada created 79,500 new jobs (40,600 full-time)in November. The unemployment rate dropped to 5.9%, a level last seen in February 2008. That wasn’t all. Canada GDP rose 0.2% in September beating the 0.1% rise that was predicted.
USDCAD plummetted, falling from 1.2684 to 1.2778 as of 1240 GMT.
Overnight, FX markets were a lot less lively.
The greenback dropped in Asia after news that the Republican tax bill vote was delayed.
AUDUSD and NZDUSD rallied, but those gains disappeared when Caixin China Manufacturing PMI missed the forecast (Actual 50.8 vs forecast 51.0)
USDJPY couldn’t generate much enthusiasm even after CPI and PMI data ticked higher.
The week-long GBPUSD rally took a breather GBPUSD drifted down from the Asia peak of 1.3548 to 1.3477 in Europe. Prices perked up when UK Manufacturing PMI rose to 58.2. (forecast 56.5)
EURUSD stayed bid in Asia and early Europe on reports that Angela Merkel was making progress with attempts to form another Grand coalition. EURUSD traded in a 1.1884-1.1939 range, opening in New York at 1.1900.
Oil traders have taken the latest Opec news in stride. Opec extended production cuts for all of 2018 and Libya, and Nigeria are participating. WTI opened at 57.78.
Fx traders will be watching for US political developments. The Republican tax bill may still make it to the Senate floor.The other distraction is talk that Secretary of State Rex Tillson will be replaced.
USDCAD Technical outlook:
The intraday USDCAD technical arebearish following this mornings break of minor support at 1.2860. The move below 1.2790 targets 1.2710, uptrend line support from September 25. 1.2860 will revert to resistance. For today, USDCAD support is at 1.2740 and 1.2710. Resistance is at 1.2810 and 1.2860.
Today’s Range 1.2710-1.2810.