USD/CAD Price Forecast: Canadian Jobs Report Sends US Dollar Higher

from Daily Forex. This is Christopher Lewis taking a look at the US dollar against the Canadian dollar. The US dollar has risen against the Canadian dollar during the trading session on Friday, breaking above the 1.4250 level yet again. The big driver here is Canadian employment, or maybe I should say lack of employment in Canada. While the unemployment rate came out at 6.5% as anticipated, Canada was supposed to, according to estimates, add 6,100 jobs last month. Instead, they lost 68,300 jobs. It's a huge miss. and a 75,000 or so swing in expectations really has got the market on the wrong side of the trade for the most part. The upward trend in the US dollar almost certainly will uh be what's expected now that the interest rate differential is starting to widen. The US yields have gained a little bit during the day, although very little at 5.263% in the 10-year yield as I record this. And Canadian yields have dropped as traders are now expecting any type of rate hike to be pushed back. This was a bit of a shock and this is especially telling when there's such a problem in the oil market. So with that being said, the market is likely to see a lot of noise. The one thing that may save the Canadian dollar a bit though is the fact that we continue to see a a tax in Iran and the Canadian dollar sometimes is used as a proxy for petroleum. Not against the US dollar because the US produces over 14 million barrels uh a year or a day. um 20 million a day if you can't count this distlits. So, not as effective here, but it could pad some of the losses. All things being equal, this is a market that looks like it's trying to work off some of this excess froth, perhaps building enough momentum to go challenge the 1.45 level at this rate.