The United States dollar rose to more than five-year highs against the Canadian dollar on Friday following the release of a particularly strong U.S. jobs report and unexpectedly weak Canadian employment data.
The U.S. economy added 321,000 jobs in November the Department of Labor said, far more than the 225,000 forecast by economists and the largest monthly increase in almost three years. September’s figure was revised up to 243,000 from a previously reported 214,000 and the unemployment rate remained unchanged at a six-year low of 5.8%.
The report also showed that average hourly earnings rose by a larger than forecast 0.4% and were 2.1% higher on a year-over-year basis.The unusually strong jobs report prompted markets to bring forward expectations for the first hike in U.S. interest rates to mid-2015 from September 2015 ahead of the data.
Simultaneously, Statistics Canada reported that the Canadian economy unexpectedly shed 10,700 jobs last month, following two months of strong jobs growth. Economists had expected the economy to create 5,300 jobs.
The Canadian unemployment rate ticked up to 6.6% from 6.5% in October, in line with expectations.
Weekly bias remains bullish as 21 and 55 EMA is crossed upward for more buying as the 4 hours, daily, weekly and monthly time-frame are synchronized for a continuation of the current strong uptrend. SSRC, MACD and RSI oscillators are also showing bullish momentum is intact in the pair. A clear break of 1.14211 resistance will resume the uptrend and bring further rise to 1.17210 resistance in the long term picture.
Key economic reports to watch out for in the week ahead is the U.S Retail Sales and Prelim UoM Consumer Sentiment.