13 Jan 2014
USD/CAD sells off from session highs
FXstreet.com (London) - USD/CAD opened the day with a continuation of its bullish trend following Friday’s jobs numbers before selling off strongly.
USD wins ugly dog contest
While the focus across much of the FX sphere had been on poor US jobs numbers, USD/CAD turned into an ugly dog contest with Canada showing an even weaker jobs market than the US. Released at the same time as the US non-farm payrolls, the report from Statistics Canada showed 46,000 jobs lost in December and the unemployment rate climbing to 7.2 per cent. With few redeeming details underneath the headline jobs number, the weak numbers have increased bets that Bank of Canada governor Steven Poloz will hold his dovish stance, with markets increasingly pricing in a further 25bps cut in the BoC overnight rate.
NFP conditions could delay Fed tapering schedule
While it was a less ugly dog when compared to Canada, the US non-farm payrolls added just 74k jobs in December, after November’s upwardly revised 241k print. The dollar had seen a broad bullish trend since the Fed’s move on 18 December to trim its monthly asset purchases by USD10bn – citing improved US economic conditions and a health outlook. While the drop in Fed numbers cannot be attributed to the Fed’s tapering, it did raise question marks over the pace of the Fed’s anticipated plan to wind up its current run of quantitative easing by the end of 2014.
Dollar selling
USD/CAD climbed to CAD1.0932 in a bullish momentum trade before selling off from oversold CAD territory. The pair remains in a bearish move, trading at session lows of CAD1.0879, down 0.25 percent on the session.
USD wins ugly dog contest
While the focus across much of the FX sphere had been on poor US jobs numbers, USD/CAD turned into an ugly dog contest with Canada showing an even weaker jobs market than the US. Released at the same time as the US non-farm payrolls, the report from Statistics Canada showed 46,000 jobs lost in December and the unemployment rate climbing to 7.2 per cent. With few redeeming details underneath the headline jobs number, the weak numbers have increased bets that Bank of Canada governor Steven Poloz will hold his dovish stance, with markets increasingly pricing in a further 25bps cut in the BoC overnight rate.
NFP conditions could delay Fed tapering schedule
While it was a less ugly dog when compared to Canada, the US non-farm payrolls added just 74k jobs in December, after November’s upwardly revised 241k print. The dollar had seen a broad bullish trend since the Fed’s move on 18 December to trim its monthly asset purchases by USD10bn – citing improved US economic conditions and a health outlook. While the drop in Fed numbers cannot be attributed to the Fed’s tapering, it did raise question marks over the pace of the Fed’s anticipated plan to wind up its current run of quantitative easing by the end of 2014.
Dollar selling
USD/CAD climbed to CAD1.0932 in a bullish momentum trade before selling off from oversold CAD territory. The pair remains in a bearish move, trading at session lows of CAD1.0879, down 0.25 percent on the session.