Canadian dollar after the jobs report
USD/CAD fell as low as 1.2542 from 1.2580 before the jobs report. However it’s since rebounded to 1.2561 as the US dollar gets a broad bid.
On a four-hour chart, you can see that the jobs report hasn’t made that much of a difference. We’re lower than yesterday’s lows but still within the middle of the recent range.
There would have been a larger pop in CAD in a normal month in this kind of jobs report but because of new, strict lockdowns in April, it’s safe to assume that many of the jobs gains will be wiped out.
That said, this is also evidence of a resilient economy. Canada needs to add just 296K jobs to get back to pre-pandemic levels.