The USD hit a 5yr high against the floundering Loonie as divergent sets of economic data released this morning showed economies moving in different directions. The US added a better than expected 252,000 jobs in December, whereas Statistics Canada showed a 4300 decline last month when expectations were for a 15000 gain. Additionally US unemployment fell to 5.6% from 5.8% whilst the figure for Canada held steady at 6.6%.
Longer term the USD looks the currency to hold but given it’s the end of the week and we’ve seen a 2+% move so far this year don’t be surprised to see some profit taking and a pull back.
USDCAD year to date