USD/CAD Tries to Make A Comeback Despite Upbeat Canadian Employment Numbers
The trend in USD/CAD has been shifting higher this week, as MAs turn into support, while crude Oil is consolidating around $80
USD/CAD has been bearish since the last week of March, falling nearly 4 cents to 1.34 lows, as the USD weakness returned, while the CAD was benefiting from a better risk sentiment and increasing Oil prices, as US WTI crude Pushed above $80. Although, we have seen a slight bullish trend this week, as Oil prices stagnate around $80 and the uncertainty remains high in financial markets.
This pair pair traded positively yesterday, breaking above the moving resistances which were acting as resistance during the bearish momentum. Now these moving averages have been trying to However, recent trades are now confined within a minor bullish channel, which is believed to be forming a bearish flag pattern.
This means that if USD/CAD breaks below the 50 SMA, it could provide negative momentum that supports the chances of the main bearish wave resuming. The next main target for the bearish wave is at 1.3350. Although, for now the 50 SMA is holding as support and the trend remains bullish this week, so we decide to open a buy USD/CAD signal a while ago, after the retreat to the 50 SMA.
Canadian March 2023 Jobs Report Data
- March employment +34.7K vs +12K expected
- Prior month 21.8K. In January jobs rose 150K
- Employment gain for March 34.7K vs 12.0K estimate
- Unemployment rate 5.0% vs 5.1% expected (5.0% prior)
- Full-time employment +18.8K vs 31.1K last month
- Part-time employment +15.9K vs -9.3K last month
- Participation rate 65.6% versus 65.7% last month
- Average hourly wages permanent employees 5.2% versus 5.4% last month
- Total hours worked rose % in March and were up 0.6% on a year-over-year basis.
Head of the release, the market was pricing in an 80% chance of no change from the BOC and a 20% chance of a cut at the April 12 meeting. This ensures that they won’t be cutting rates any time soon as wages for permanent employees soften by 2 points.
USD/CAD Live Chart
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