USDCAD Overnight Range 1.2963-1.3104              

Today’s US nonfarm payrolls headline was ugly. May NFP gained a mere 38,000 jobs and USDCAD dropped like a rock, falling from 1.3080 just before the release to 1.2963 immediately afterwards. Ouch!.

Yet it isn’t a complete write-off. The unemployment rate fell to 4.7%. Still it is ugly enough to shelve the prospect of a June rate hike.

Janet Yellen will have more to say on Monday in her speech in Philadelphia.

Overnight FX markets were static. The US dollar was a tad higher against G7 currencies which for the most part merely traded sideways in very narrow ranges while traders awaited the release of the nonfarm payrolls report.  The only data of note during the Asia session was the Caixin China Services PMI index which came in at 51.2.

It was a similar story in Asia albeit with a little more data. Traders ignored Markit Services PMI reports including the Eurozone data which was in line with expectations.  Eurozone Retail Sales were soft but had zero impact on trading.

Looking ahead, Stephen Poloz, Governor of the Bank of Canada, gives a lecture followed by a press conference in Ottawa on Saturday.  Monday’s USDCAD open in Asia/ Europe could be volatile depending on what he says about the economy.

USDCAD Technical Outlook

The intraday USDCAD technical are bearish with the decisive move below the 1.3050-60 area and are looking for a move below 1.2960 to extend losses to 1.2840. A failure to move below 1.2960 implies additional 1.2960-1.3100 consolidation.  For today, USDCAD support is at 1.2960, 1.2920 and 1.2880.  Resistance is at 1.3010 and 1.3040.

Today’s Range 1.2920-1.3020