The Canadian dollar rose to five-week highs against the U.S. dollar on Friday, as a stronger-than-forecast domestic jobs report for March bolstered demand for the Loonie. Statistics Canada reported that the economy added 42,900 jobs last month, well above the forecast jobs growth of 21,500. The increase came after the economy shed 7,000 jobs in February. This really strengthened the Canadian dollar against its counterparts which includes the U.S dollar, Swiss Franc and Great Britain Pound.
The Labor Department reported Friday that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000. The U.S. unemployment rate also remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%. This reports currently weakened the greenback against the commodity currencies at the end of Friday’s trading session.
Weekly bias in the USD/CAD shows more decline is expected to 1.0840 if a break of 0.9564 support is seen. MACD on the Daily time frame shows that the bears are about to commence a sharp supply of the pair with the recent employment statistics in support of this, I recommend looking for only short positions.
In the week ahead, market players will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting for further clues on the future course of monetary policy.