Friday, October 9, 2009

Dollar / Canada is falling rapidly after the publication of data on the labor market

Breakthrough of the lower boundary of the consolidation range in dollar / Canada a few days ago has become a very negative signal for the bulls, and while the decline then slowed, the continued weakening of the U.S. currency supported by the persistence of negative mood on the pair. The fall of the dollar index to a fresh yearly lows yesterday allowed the dollar / Canada to break through to C $ 1.0500, as published today, data on the labor market in Canada have to be that impetus for further growth of the Canadian currency, which has been waiting for many bulls on it. Growth in employment of 30 600 jobs six times surpassed analysts' expectations, while the drop in the unemployment rate from 8.7% to 8.4% in September also proved to be a pleasant surprise, and now the dollar / Canada holds about C $ 1.0440. Option barriers at C $ 1.0450 have been passed, and now hold only a couple of drop bids around C $ 1.0440/30, break below which will open the way to C $ 1.0400. Meanwhile, dealers noted that in general the dollar / Canada looks like propensity to fall in the direction of C $ 1.03.

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