USD/CAD – Canadian Dollar Subdued as US, Canadian Markets Closed for Holidays

USD/CAD is showing little movement on Monday, as the pair trades at 1.3260. Traders can expect a quiet day from the pair, as Canadian and US markets are closed on Monday for a holiday.

The markets had plenty of employment numbers to sift through on Friday, with key job releases from both sides of the border. In Canada, employment change soared, as the economy added 67.2 thousand jobs in September. This crushed the estimate of 8.5 thousand. Despite the strong gain, the unemployment rate remained unchanged at 7.0%, as more people entered the work force. The Canadian dollar posted sharp gains after the employment releases, but the positive news proved to be short-lived. USD/CAD rebounded, briefly pushing across the 1.33 line for the first time since March.

US employment numbers for September were mixed on Friday. Nonfarm payrolls, one of the most closely watched indicators, rose slightly to 156 thousand. Although this was well short of the forecast of 171 thousand, the markets do not appear overly concerned, as other employment indicators were steady. Average Hourly Wages edged up to 0.2%, matching the forecast. The unemployment edged up to 5.0%, just above the forecast of 4.9%. As well, the labor force participation rate ticked higher. Unemployment claims sparkled last week, dropping to just 249 thousand, beating the estimate of 255 thousand. Unemployment claims have come in below the forecast for 10 straight weeks, pointing to a tight labor market. Jobless filings have been below 300,000 for 83 straight weeks, marking the longest streak since 1970. Overall, September employment numbers were decent and the likelihood of  December rate has actually risen slightly since Friday, from 63 percent to 66 percent.

USD/CAD Fundamentals

Monday (October 10)

  • There are no US or Canadian events on Monday

USD/CAD for Monday, October 10, 2016

USD/CAD October 10 at 8:45 GMT

Open: 1.3248 High: 1.3278 Low: 1.3224 Close: 1.3240

USD/CAD Technical

S1 S2 S1 R1 R2 R3
1.2992 1.3028 1.3120 1.3253 1.3371 1.3457
  • USD/CAD has shown limited movement in the Asian and European sessions
  • 1.3120 is providing strong support
  •  1.3253 is a weak resistance line

Further levels in both directions:

  • Below: 1.3120, 1.3028 and 1.2922
  • Above: 1.3253, 1.3371, 1.3457 and 1.3551
  • Current range: 1.3120 to 1.3253

OANDA’s Open Positions Ratio

USD/CAD ratio is showing little movement on Monday, consistent with the lack of activity from USD/CAD. Long positions have a strong majority (61%), indicative of trader bias towards USD/CAD breaking out and moving higher.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.