USD/CAD steadies below 1.2100 following NFP-inspired drop

USD/CAD fell sharply within the early American session.
Nonfarm Payrolls in US rose but forecast in May.
Employment in Canada declined by 68,000, percentage rose to eight .2%.
The USD/CAD pair rose to its highest level during a week at 1.2134 on Friday but turned south within the last half of the day. After dropping to a daily low of 1.2070, the pair seems to possess gone into a consolidation phase and was last seen losing 0.15 on the day at 1.2083. For the week, the pair remains on target to shut little changed.

Renewed USD weakness drags USD/CAD lower
Earlier within the day, the uninspiring May jobs report from the US caused the greenback to return under heavy selling pressure. The US Bureau of Labor Statistics reported Nonfarm Payrolls increased by 559,000, missing the market expectation of 650,000. Underlying details of the publication showed the labor pool Participation edged lower to 61.6% from 61.7 in April.

With these figures suggesting that the Fed won’t rush to start out tapering discussions, the US Dollar Index erased an outsized portion of Thursday’s gains and is currently losing 0.37% at 90.15. Moreover, the 10-year US Treasury bond yield is down nearly 4%.

On the opposite hand, Statistics Canada announced that Employment in Canada fell by 68,000 in May, compared to analysts’ estimate of 20,000, and limited CAD’s gains. Additionally, the percentage ticked up to eight .2% from 8.1%.


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