Ready to trade?

It's quick and easy to get started – even with a small deposit. Apply in minutes with our simple application process.

Chart of the day: USDCAD

A stellar jobs report and lower than expected unemployment provided little relief to a weakening Canadian dollar (CAD) as the USD continues to strengthen amid virus uncertainty.

USDCAD daily chart

Despite Canada’s unemployment rate coming in 0.2 of a percentage point lower than expected on Friday (5.5% vs 5.7% expected), the CAD went on to close at a two-month low.

There’s strong horizontal resistance seen at the 1.3340 level, and I expect USDCAD to move higher and test resistance as the greenback continues to drive higher. Of course, how price behaves into this supply zone is key. A mix of coronavirus fears and US data relative outperformance is driving investors to the USD as a safe haven.

Commodity currencies continue to drive lower amid the coronavirus outbreak, while the US continues to relatively outperform - the CAD is no exception. It’s status as a petro-currency weighs heavier again as oil prices continue to drop in response to China’s virus quarantine and reduced travel.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information provided here, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

24/5 Support