USD/CAD rallies on weak Canadian data, EUR/USD testing critical support
Canadian dollar drops sharply after the much-weaker-than-expected employment report. EUR/USD testing critical $1.10 support which, if broken, could signal new nearly two-year highs for greenback.
USD/CAD rallied strong following key employment data out of Canada that was much weaker than expected, with Statistics Canada reporting that the economy shed 1800 jobs in October vs market expectations of an increase in jobs of about 10,000. USD/CAD rose over 50 pips on the news to the $1.3235 area before pulling back to the $1.3220 area.
Big test of euro support near $1.10
EUR/USD was pushing toward a key test of the $1.10 support level, trading in early morning New York action around $1.1025. If the greenback can push through $1.10 in a meaningful way it will likely reveal October’s strong euro rally as simply a pullback in a continuation of a nearly two-year US dollar uptrend. A near universal sense that the US is not heading toward recession, a big reversal of views held this summer, the Federal Reserve (Fed) signaling a pause in lower rates and positive carry holding greenbacks are all underpinning strength in the US dollar.
The University of Michigan sentiment index, viewed as a major economic indicator, is due this afternoon and if it shows strong positive sentiment could be what's needed to take the greenback to new recent highs.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
