2 May 2014
USD/CAD reaches 1.1000 after solid NFP
FXStreet (Córdoba) - The USD/CAD surged to above 1.1000 after a stronger-than-expected US nonfarm payrolls boosted the greenback across the board.
The USD/CAD rallied to 1.1004, its highest in 3 days, although it quickly retraced some of its advance as investors continue to assess the employment figures. The US economy created 288,000 new jobs in April, surpassing the 210,000 expected while the unemployment rate fell to 6.3%, its lowest since September 2008.
"First leg is the subsitution effect of rising yields the next leg a few hours hence is the wealth effect of a rising labour market on risk taking", said Sebastian Galy, analyst at Societe Generale.
USD/CAD technical levels
At time of writing, the USD/CAD is trading at 1.0980, 0.23% above its opening price. If the USD/CAD breaks decisively above 1.1000, next resistances could be found at 1.1029 (Apr 29 high) and 1.1048 (50-day SMA). On the other hand, supports on dips are seen at 1.0971 (100-day SMA), 1.0953 (May 2 low) and 1.0942 (Apr 30 low).
The USD/CAD rallied to 1.1004, its highest in 3 days, although it quickly retraced some of its advance as investors continue to assess the employment figures. The US economy created 288,000 new jobs in April, surpassing the 210,000 expected while the unemployment rate fell to 6.3%, its lowest since September 2008.
"First leg is the subsitution effect of rising yields the next leg a few hours hence is the wealth effect of a rising labour market on risk taking", said Sebastian Galy, analyst at Societe Generale.
USD/CAD technical levels
At time of writing, the USD/CAD is trading at 1.0980, 0.23% above its opening price. If the USD/CAD breaks decisively above 1.1000, next resistances could be found at 1.1029 (Apr 29 high) and 1.1048 (50-day SMA). On the other hand, supports on dips are seen at 1.0971 (100-day SMA), 1.0953 (May 2 low) and 1.0942 (Apr 30 low).