USD/CAD – Slight Gains on Strong Job Openings Report

The Canadian dollar has posted slight losses on Tuesday, as USD/CAD trades in the low-1.25 range in the North American session. On the release front, US JOLTS Jobs Openings improved to 5.03 million. In Canada, today’s sole release is a speech from BOC Senior Deputy Governor Carolyn Wilkins in Ottawa.

The US employment picture continues to look bright, as JOLTS Jobs Openings climbed to 5.05 million, matching expectations. This was the indicator’s highest level since 2001, and points to more available jobs due to an increase in demand for goods and services. The strong reading follows a superb US Nonfarm Payrolls report for January, which was released on Friday. The key employment indicator improved to 257 thousand in January, up from 252 thousand a month earlier. This easily beat the estimate of 236 thousand. The Federal Reserve has been clear that the employment numbers will have to be strong before a rate hike kicks in, so these strong employment releases reinforce expectations for an interest rate in mid-2015, which would be a major boost for the US dollar.

On Monday, Canadian Housing Starts improved to 187 thousand in January, up from 180 thousand a month earlier. This beat the estimate of 184 thousand. Last week ended with strong Canadian numbers. Building Permits, a volatile indicator, jumped 7.7%, easily beating the forecast of 4.8%. On the employment front, Employment Change climbed 35.4 thousand, crushing the estimate of 4.7 thousand. The unemployment rate remained at 6.6%, beating the forecast of 6.7%.

USD/CAD for Tuesday, February 10, 2015

USD/CAD February 10 at 15:50 GMT

USD/CAD 1.2474 H: 1.2537 L: 1.2524

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2261 1.2387 1.2469 1.2543 1.2680 1.2761

 

  • USD/CAD was uneventful in the Asian session. The pair posted gains in the European session. This trend continues in North American trade, as the pair put strong pressure on resistance at 1.2543.
  • On the downside, 1.2469 is under pressure. 1.2387 is stronger.
  • 1.2543 is an immediate resistance line.
  • Current range: 1.2469 to 1.2543

Further levels in both directions:

  • Below: 1.2469, 1.2387, 1.2261, 1.2190, 1.2096 and 1.1975
  • Above: 1.2543, 1.2680, 1.2761, 1.2950 and 1.3063

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in long positions on Tuesday, reversing the direction seen a day earlier. This is consistent with the pair’s movement, as the US dollar has posted gains. The ratio is a split between long and short positions, indicative of a lack of trader bias as to what direction the pair will take next.

USD/CAD Fundamentals

  • 13:20 US FOMC Member Jeffrey Lacker Speaks.
  • 14:00 US NFIB Small Business Index. Estimate 101.3 points. Actual 97.9 points.
  • 15:45 BOC Senior Deputy Governor Carolyn Wilkins Speaks.
  • 15:00 US JOLTS Openings. Estimate 5.03M. Actual 5.03M.
  • 15:00 US IBD/TIPP Economic Optimism. Estimate 51.4 points. Actual 47.5 points.
  • 15:00 US Wholesale Inventories. Estimate 0.2%. Actual 0.1%.

*Key releases are highlighted in bold

*All release times are GMT

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.