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COZfx: USD/CAD weekly outlook

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COZfx: USD/CAD weekly outlook

Postby dwang » Mon Mar 10, 2014 2:26 am

COZforex: The US dollar jumped higher against the Canadian dollar on Friday after the U.S. jobs report for February came in ahead of expectations while Canada’s jobs report was unexpectedly weak.

USD/CAD hit highs of 1.1101 and ended Friday’s session at 1.1085, 0.96% higher for the day. Coz forex senior derivatives trader Daniel • Moloney said, USD/CAD is predicted to find support at 1.0950, and a decline through could take it to the next support level of 1.0903. The pair is expected to find its first resistance at 1.1046, and a rise through could take it to the next resistance line of 1.1095.

The US economy added 175,000 jobs in February, the Labor Department reported, well above expectations for 149,000 new jobs. The unemployment rate ticked up to 6.7% from 6.6% in January, as more people joined the workforce.

The jobs report eased concerns over soft US employment and other economic data seen in the past few months. The strong figure indicated that the Federal Reserve is likely to continue to scale back its stimulus program, which has weighed on the value of the dollar.

The Canadian dollar weakened after official data showed that the economy unexpectedly eliminated jobs last month. Statistics Canada reported that the economy shed 7,000 jobs last month, confounding expectations for jobs growth of 15,000. The unemployment rate remained unchanged at 7.0%.

The data came after the Bank of Canada left rates on hold at 1.00% on Wednesday and reiterated that the next move in rates would be data dependent. The bank said economic growth in the fourth quarter of 2013 was slightly stronger than anticipated, adding that it still expects growth of 2.5% in 2014.

In the week ahead, US data on retail sales and consumer sentiment will be in focus.


(COZ forex UK)
dwang
 
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