Here is how we are trading USD/CAD following the US NFP and Canada's employment data.
US NFP beat forecast.
But, negative revision in previous US NFP is bigger.
Y/Y and M/M hourly earnings came same as forecast.
Unemployment rate increased by 0.1%.
Conclusion: If we look at everything, it was overall a neutral outcome. However, the market is turning in favor of USD because negative US economic data has already been priced in. The USD index has been declining since the release of poor PMIs, dovish Fed Powell, poor ADP NFP, etc. So, the market has already priced in a weaker employment condition.
USD/CAD was at a support area as shown in the graph below. Canada released its employment data at the same time as the NFP was released. The number of new jobs, as well as the unemployment rate, came worse than expected.
Exit plan (whichever happens first):
Exit if the forex pair breaks successfully below the support area. Click here to learn what a successful breakout is.
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