Early on Tuesday, the Canadian dollar is trading somewhat steady after being bearish against the US dollar following the release of weak housing data on the back of a disappointing employment report for November. At the time of writing, USD/CAD is trading around 1.323.

After a few days of bearishness driven by a weakness in the US dollar, USD/CAD strengthened on Friday after the release of a stronger than expected NFP report from the US and a disappointing employment report from Canada for November. Canada’s job market witnessed a loss of over 71,000 positions while unemployment soared to 5.9% in November – the highest level seen in over a year. The employment report was also a severe disappointment as economists were expecting an addition of +10,000 jobs instead.

On Monday, USD/CAD turned even more bullish after the release of Canadian building permits data. According to Statistics Canada, building permits declined by 1.5% MoM in October, going against economists’ forecast for a +3.0% gain instead.