USD / CAD Exchange Rate Forecast – Canadian Dollar Strengthens Following Robust Jobs Report
USD / CAD eased on Friday as the Canadian dollar gained ground following the better-than-expected jobs report. The dollar fell against most major currencies, despite rising US Treasury yields. The Canadian economy created 230,700 jobs in June as restrictions aimed at slowing the pandemic were lifted across the country. After recovering by more than 17% since March 2020, the Canadian dollar is finally finding a low as the greenback continues to gain ground.
USD / CAD eased on Friday, retreating to support near an uptrend line that sits near 1.2430 and the 10-day moving average at 1.2402. Target resistance is seen near April highs at 1.2657. Short term momentum turned negative as the Fast Stochastic generated a cross sell signal. The current reading of the Fast Stochastic is 54, up from 84, reflecting the deceleration of the positive momentum. Medium-term momentum remains positive as the MACD (Moving Average Convergence Divergence) histogram prints in positive territory with an upward sloping path that indicates a higher exchange rate.
Canadian jobs increase more than expected
According to Statistics Canada, the Canadian economy created 230,700 jobs in June. Canada created more jobs than expected in June, reducing employment to 1.8% of pre-pandemic levels. The unemployment rate was 7.8%, just below expectations of 7.7%. The job gain came as the number of part-time positions increased by 263,900, bringing it back to pre-pandemic levels, while the number of full-time jobs fell by 33,200.