Market

USD/CAD: Dueling Jobs Report Disappointments, Bears May Target 1.21 Next | Investing.com

Two jobs report duds

It was a proverbial “shootout at the 49th parallel” with both the US and Canada releasing their highly-anticipated monthly jobs reports on Friday, but this time, both countries’ labor markets misfired.

As my colleague Joe Perry noted earlier Friday, the US report showed disappointing jobs growth of only 266k jobs (vs. effectively 1M expected), and that was even before the -78k net revisions to past two months’ jobs reports. Nonetheless, the Canadian also saw a setback, with Canada reporting a -207k decline in employment, taking the up to 8.1% in the Great White North.

Based on recent business surveys, the issue is more about labor market supply than demand; in other words, companies want to hire qualified employees, but many of those employees don’t yet feel comfortable (re-)entering the workforce due to a combination of safety concerns, childcare headaches, and generous government benefits. For a North American economy that was showing signs of turning the corner and reopening amidst widespread vaccine availability, it looks like we may have longer to wait before the labor market starts firing on all cylinders again.

USD/CAD Technical Analysis

Looking at the , traders are still weighing which of the two abysmal jobs reports was worse. While Friday’s fundamental reports out of the US and Canada have largely offset one another, the technical picture is far clearer. USD/CAD broke down to a 3+ year low below 1.2250 on Thursday, extending a downtrend that’s been in place for more than a year:

USD/CAD Daily Chart

While we could see an oversold bounce early next week given the oversold RSI indicator, the technical bias remains to the downside as long as USD/CAD holds below previous-support-turned-resistance at 1.2250. To the downside, the next support level to watch will be the 6-year low around 1.2100.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button