USD/CAD climbs above 1.2520 after US and Canada jobs reports
- USD/CAD gained traction in the early American session.
- Employment in Canada rose less than expected in July.
- Upbeat Nonfarm Payrolls data from US provides a boost to USD.
The USD/CAD pair broke out of its tight daily trading range and spiked to a session high of 1.2541 in the early American session. As of writing, the pair was up 0.16% on the day at 1.2527.
USD capitalizes on impressive NFP print
The data published by the US Bureau of Labor Statistics revealed on Friday that Nonfarm Payrolls (NFP) rose by 943,000 in July, surpassing the market expectation of 870,000. Additionally, the Unemployment Rate declined to 5.4% from 5.9% and June's NFP increase got revised up to 938,000 from 850,000. Following the upbeat jobs report, the US Dollar Index is up 0.4% on the day at 92.61.
On the other hand, Statistics Canada reported that the Unemployment Rate in Canada declined to 7.5% in July from 7.8%. However, the Net Change Employment 94,000 and missed analysts' estimate of 177,500 by a wide margin and made it difficult for the CAD to stay resilient against its rivals.
Later in the session, Ivey Purchasing Managers Index data from Canada will be looked upon for fresh impetus.
Technical levels to watch for