USD/CAD within range near 1.2580 post-NFP

The greenback keeps the familiar range vs. its Canadian peer in the wake of US, CA data, taking USD/CAD to the 1.2570/80 region for the time being.

USD/CAD unchanged on data

The pair is clinging to its daily gains after US payrolls showed the creation of jobs in the economy dropped by 33K in September (mostly due to extreme weather conditions) vs. 90 K estimated and down from August’s 169K (revised higher from 156K).

Furthermore, the unemployment rate edged lower to 4.2% (vs. 4.4% expected) and average hourly earnings – a key measure for inflation wage – expanded more than initially forecasted 0.5% MoM.

In Canada, the employment rose less than expected by 10K vs. 14.5K estimated, while the jobless rate stayed at 6.2% (vs. consensus at 6.3%).

The results in the US docket lifted the yields of the 10-year reference to fresh tops in the 2.40% neighbourhood, as the probability of a rate hike by the Fed at the December meeting is now at 93%, according to Fed Funds futures prices.

USD/CAD significant levels

As of writing the pair is gaining 0.04% at 1.2570 facing the next up barrier at 1.2664 (high Aug.31) seconded by 1.2722 (38.2% Fibo of the 2017 drop) and finally 1.2777 (100-day sma). On the downside, a drop below 1.2446 (low Oct.4) would aim for 1.2414 (low Sep.29) and then 1.2345 (21-day sma).