The USD/CAD price declined slightly after the latest Canadian jobs and US producers price index (PPI) data. The pair fell to 1.2570, which was slightly below this week’s low of 1.2520.
Canada jobs numbers
The Canadian statistics agency published relatively strong jobs numbers, which is a sign that the country’s economy is rebounding. The country added more than 259,000 jobs in February after losing more than 225,000 jobs in January. This happened as manufacturers and services providers started to reopen their businesses as the government started to offer vaccinations.
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Meanwhile, the unemployment rated declined from 9.4% in January to 8.2% in February. This rate is substantially higher than the UK’s 5.0% and the US 6.2%, which signals that the Canadian economy is recovering slower than its peers.
The participation rate, which measures the number of working people in the workforce, increased from 64.7% to 79.2% in February.
These numbers came a week after the US published relatively strong jobs numbers. The economy added more than 300k jobs in February, a significant jump from the 40k that were created in the previous month. And yesterday, data showed that the number of Americans who filed for initial jobless claims continued to fall.
Most importantly, the Canadian jobs data came a few days after the Bank of Canada (BOC) interest rate decision. The bank left its interest rate unchanged and pledged to continue with its asset purchases to boost the recovery.
The USD/CAD price is also reacting to the latest US producer price index (PPI) data. According to the BLS, the PPI increased by 2.8% in February, helped by higher crude oil prices. This increase was better than the previous month’s annual increase of 1.7% and the median estimate of 2.7%. Core PPI, which excludes the volatile food and energy prices, increased by 2.5% in February from 2.0% in the previous month.
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USD/CAD technical forecast
The two-hour chart shows that the USD/CAD price declined to 1.2510, which is slightly below this week’s low of 1.2520. The pair is slightly below the 25-period and 15-period exponential moving averages (EMA) while the rally of the Average Directional Index (ADX) has faded. The price is also slightly below the neckline of the triple top pattern that happened a few weeks ago. Therefore, the pair will likely continue dropping as bears target the next key support at 1.2450.