As Bart Simpson would say “Ay Caramba.”  Statistics Canada reported  that Canada gained 94,000 new jobs in November and 89,900 jobs were full time.  The consensus forecast was for a gain of 11,000. Interestingly, employment increased in Alberta which seems odd due to the oil patch issues.

Source:  Statistics Canada

USDCAD plunged on the data.  It dropped from a pre-release level of 1.3385 to 1.3288 supported by a hugely disappointing US nonfarm payroll report.  The consensus NFP forecast was for a gain of 200,000 jobs in November, but many forecasters were looking for an upside surprise. They were surprised, but not happily.  The US only added 155,000 jobs.

The US dropped across the board against the G-10 majors, although its losses were minimal compared to the Canadian dollar.

EURUSD climbed from 1.1370 pre-NFP to 1.1410 immediately after but quickly retreated to 1.1385.  Eurozone GDP, released earlier was as expected as was the unemployment report.  Instead, traders are looking ahead to next week’s quarterly European Council meeting that starts on December 13.

GBPUSD trade like EURUSD.  It popped than dropped and is unchanged.  Traders are less concerned with American data then they are with Tuesday’s UK Parliament vote on Theresa May’s Brexit plan.  It is widely expected to fail which opens up a new can of worms.

USDJPY traded lower, dropping from 112.90 to 112.60 but that move was not sustained.  However, low US Treasury yields and risk aversion fears from the US/China trade dispute are limiting gains.

USDCAD Technical Outlook

The  USDCAD technicals are bullish while prices are above 1.3200 however, the intraday technicals snapped this weeks uptrend with today’s move below 1.3360.  that level will revert to resistance. A break below 1.3280 will extend losses to 1.3200.  For today, USDCAD support is at 1.3280 and 1.3240.  Resistance is at 1.3330 and 1.3360.

Today’s Range 1.3270-1.3330