Strong Canadian employment figures have sent the loonie on a rally, breaking the July 2008 resistance level against the greenback and heading towards parity. Data for February showed the unemployment rate dropping from 8.3% to 8.2%, while the employment change result was largely as expected (20.9k actual vs. 20k forecast). In fact, most of the new jobs have been in the public sector, while the private sector showed a fall but the result shows that a rebound is taking place. Canadian unemployment reached a high of 8.7% in October 2009. USDCAD was poised around 1.0220 as the news broke, and sent it below the 1.0200 support level to 1.0160. The significant break in technical support for the pair may turn out to be the last line of defense before the two currencies reach parity once again. USDCAD traded around 1:1 in late 2007 and much of 2008 as the Credit Crunch pushed global economies into recession. While the improvement in jobs was only moderate, the last days general appetite for risk has contributed to setting-up the move and the Dollar has been sold off against most of the majors today.
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