BREAKING: USDCAD dips after jobs data

2:35 PM 7 January 2022

Labour market reports for December from the United States and Canada were released at 1:30 pm GMT. The US report showed weaker job gains than expected. However, deceleration in wage growth was smaller than expected, hinting that inflationary pressures may be here to stay for some time. US unemployment dropped below 4%. On the other hand, the Canadian jobs report showed better than expected job gains with 122.5k increase in full-time jobs and 67.7k decrease in part-time jobs.

NFP report

  • Non-farm payrolls: 199k vs 400k expected (ADP: 807k)

  • Wage growth: 4.7% YoY vs 4.1% YoY expected

  • Unemployment rate: 3.9% vs 4.1% expected

Canadian jobs reports

  • Employment change:54.7k vs 27.5k expected

  • Unemployment rate: 5.9% vs 6.0% expected

US dollar took a hit following the release while the Canadian dollar strengthened against major peers. Taking a look at USDCAD at H1 interval, we can see that the pair dropped below the lower limit of a local market geometry at 1.2700, suggesting that more weakness may be looming ahead.

Source: xStation5

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