Forex: USD/CAD plunges on US and Canada labor market data

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FXstreet.com (Barcelona) - The improved sentiment seen on the release of the US nonfarm payrolls that saw its August figure being revised 47k higher triggered a USD/CAD plunge below the 0.9800 handle that only found support at 0.9735 low. The cross bounced to 0.9760 area, but is still edging lower by -0.50% on the day ( GMT ).

However, the employment in Canada rose by 52.1k, increasing the added jobs pace from the previous 34.3k, and coming in much higher than the 10k consensus. The participation rate also rose, from 66.6% o 66.8%. The only hurtful data for the Canadian Dollar was the unexpected rise of the unemployment rate, from 7.3% to 7.4%.

"A break above 0.9884 would extend the recovery phase to 0.9919/44", wrote UBS analysts, pointing to support at 0.9758.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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