USD/CAD drops to fresh lows near 1.2570

• Jobs report came in softer than expected.
• Sport tested fresh tops near 1.2680.
• USD drops after Trump signs deal.

The Canadian Dollar briefly tested fresh lows around 1.2680 vs. its American peer on Friday, although USD/CAD quickly reversed the up move and dropped to fresh daily lows in the 1.2570 region.

USD/CAD receded below 1.2600

Spot met extra buying pressure after Canadian employment dropped by 88K jobs during January, the biggest loss since 2009, while the drop in part-time jobs is the largest on record (-137K).

Further news from the report saw the unemployment rate ticking higher to 5.9% against forecasts for 5.8%.

However, the pair has quickly breached the 1.2600 key support after investors appeared to have assessed positively the annualized 3.3% gain in average wage of permanent employees, up from 2.9%.

In addition, yields of the US 10-year reference are staging a rebound to the 2.85% area after briefly bottoming out near 2.81%.

USD/CAD significant levels

As of writing the index is losing 0.30% at 1.2565 facing the immediate support at 1.2491 (low Feb.6) followed by 1.2469 (23.6% Fibo of the 217 drop) and finally 1.2445 (10-day sma). On the upside, a surpass of 1.2681 (high Feb.9) would aim for 1.2722 (38.2% Fibo of the 2017 drop) and then 1.2754 (200-day sma).