USD/CAD plummets below 1.3700 after US/Canada Employment data

USD/CAD falls vertically below 1.3700 after the release of the US/Canada labor market data.
US/Canada job growth slowed in October more than expected.
Slower job growth may allow Fed policymakers to advocate for concluding the rate-tightening campaign.

Sagar Dua FXStreet

The USD/CAD pair fell sharply below the round-level support of 1.3700 after the release of the United States/Canada labor market data. The Loonie asset witnesses an intense sell-off as the US Dollar Index (DXY) drops swiftly on the soft US Nonfarm Payrolls (NFP) report for October.

The US Bureau of Labor Statistics (BLS) reported that job hiring was slow against expectations. US employers hired 150K job seekers, lower than expectations of 180K and 297K job additions in September (revised lower). The jobless rate rose to 3.9% from 3.8% expectations and the former reading.

Monthly Average Hourly Earnings grew at a slower pace of 0.2% against 0.3% growth in September. The annual wage growth was 4.1%, higher than expectations of 4.0% but dropped from 4.2% reading a year ago. Slower job growth may allow Federal Reserve (Fed) policymakers to advocate for concluding the rate-tightening campaign.

Meanwhile, investors await the US ISM Services PMI for October, which will be published at 14:00 GMT. The Services PMI, which represents the service sector that accounts for two-thirds of the US economy is seen dropping to 53.0 against the former reading of 53.6.

On the Canadian Dollar front, the laborforce was expanded by 17.5K employees against expectations of 22.5K and September’s reading of 63.8K. The Unemployment Rate rose to 5.7% versus expectations of 5.6% and the former reading of 5.5%. A soft labor market report may allow Bank of Canada (BoC) policymakers to keep interest rates unchanged at 5% in the monetary policy meeting next month.

USD/CAD

Overview
Today last price	1.3671
Today Daily Change	-0.0069
Today Daily Change %	-0.50
Today daily open	1.374

Trends
Daily SMA20	1.3721
Daily SMA50	1.3629
Daily SMA100	1.3465
Daily SMA200	1.3489

Levels
Previous Daily High	1.386
Previous Daily Low	1.3736
Previous Weekly High	1.3881
Previous Weekly Low	1.3661
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.3783
Daily Fibonacci 61.8%	1.3812
Daily Pivot Point S1	1.3697
Daily Pivot Point S2	1.3654
Daily Pivot Point S3	1.3573
Daily Pivot Point R1	1.3821
Daily Pivot Point R2	1.3902
Daily Pivot Point R3	1.3945

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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