USD/CAD bounces off lows on data, back above 1.2100

The Canadian Dollar remains well bid so far, now dragging USD/CAD to the 1.2080/70 band in the wake of the jobs report, fresh lows.

USD/CAD offered on data, USD-selling

Spot came in under extra selling pressure today after Canadian employment increased more than expected by 22.2K jobs during last month and the jobless rate ticked lower to 6.2% vs. 6.3% initially forecasted.

The auspicious prints keep adding to the string buying interest around CAD, recently reinforced by the decision of the Bank of Canada to raise the key rate by 25 bp to 1.0%.

The sell off in the greenback has been also collaborating with the 4-week negative streak in the pair so far, losing more than 12% already since YTD tops near 1.3800 the figure seen in May.

CAD momentum remains underpinned by the domestic money markets, where yields of the Canadian 10-year reference climbed just below 2% on Thursday, just to retreat to the 1.965% region at the time of writing.

USD/CAD significant levels

As of writing the pair is retreating 0.02 % at 1.2117 facing the next support at 1.2061 (2017 low Sep.8) seconded by 1.1916 (low May 14 2015) and finally 1.1799 (low Jan.15 2015). On the upside, a break above 1.2376 (10-day sma) would expose 1.2470 (23.6% Fibo of the 2017 drop) and finally 1.2499 (21-day sma).