USD/CAD drops below 1.2100 after US and Canada jobs reports
- USD/CAD came under modest bearish pressure in early American session.
- US Dollar Index drops into the negative territory after Nonfarm Payrolls report.
- Unemployment Rate in Canada edged higher to 8.2% as expected.
After rising to a daily high of 1.2134 during the European session, the USD/CAD pair lost its traction and was last seen losing 0.13% on the day at 1.2083.
DXY turns south after US May jobs report
The renewed USD weakness seems to be forcing USD/CAD to push lower in the last hour. The data published by the US Bureau of Labor Statistics revealed on Friday that Nonfarm Payrolls in the US rose by 559,000. This reading missed the market expectation of 650,000 and weighed on the greenback. Further details of the publication revealed that the Unemployment Rate declined to 5.8% from 6.1% and the Labor Force Participation Rate was little changed at 61.6%.
Reflecting the negative impact of these figures on the USD, the US Dollar Index is down 0.27% on the day at 90.25.
On the other hand, Statistics Canada reported that the Unemployment Rate in Canada ticked up to 8.2% in May as expected. The Net Change in Employment arrived at -68,000 and fell short of the market expectation of -20,000. Nevertheless, the USD's market valuation remains the primary driver of USD/CAD's movements.
Later in the session, the Ivey Purchasing Managers Index from Canada and Factory Orders data from the US will be featured in the economic docket.
Technical levels to watch for