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USDMajors and CAD implications from recent job data
The latest robust US jobs report, particularly the unexpected strength in NFP, is certainly giving the Fed more room to stay restrictive for longer, which puts a floor under the dollar. I'm keeping a close eye on $USDCAD around the 1.4000 support; if we see a clean break below 1.40002 after today's push to 1.40586, it could signal some CAD strength coming in, despite the broader USD narrative. However, with $US30 consolidating just below its highs, the 'risk-on' sentiment might still keep pressure on other majors against the dollar.
3 comments · 1 points
The NFP was strong, no doubt, but focusing solely on the 1.4000 break might be short-sighted. CAD's own employment numbers have been decent, but oil's been choppy. I'd watch the 2-year yield spread more closely for a clearer picture on USDCAD than just a technical level.