USD/CAD Trading Bullish After Release of Disappointing Economic Data From Canada

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.