USD/CAD hits 1.3200, 1-week high

USD/CAD rose further after the beginning of the American session and peaked at 1.3200, the highest level since July 27. The pair failed to break above 1.3200 and pulled back. It was trading at 1.3185/88, up 150 pips for the day, having the best performance since June 24.

The pair jumped after US and Canadian jobs reports. While in the US data surpassed expectations in Canada numbers were worst-than expected.

“Canada's employment report was poor. Canada lost 71.4k full-time jobs in July after businesses shed 40.1k in June.  The unemployment ticked up (to 6.9% from 6.8%), while the participation rate slipped to 65.4% from 65.5%.  Adding insult to injury, Canada also reported a record trade deficit for June.  What was the record shortfall in May was revised to show even more red ink.  Another series of reports like these and the Bank of Canada's optimism about a recovery in H2 may be dashed”, said analysts from BBH.

After that, the PMI Ivey from Canada jumped from 51.7 to 57.0 (expected at 50.9), partially offsetting the negative print of the job report.

Greenback is consoling gains across the board but during the last hours it lost strength on the other side, the Loonie remains near daily lows in the market.