Canadian Dollar Trails Resurgent US Peer on Disappointing Jobs Data

The Canadian dollar today lost ground against the dollar for the third consecutive session despite rising global crude oil prices as the greenback rallied. The USD/CAD currency pair edged higher for the third consecutive session following the release of disappointing employment reports from both Canada and the US.
The USD/CAD currency pair today rallied from a low of 1.2658 to a high of 1.2722 in the American session but as off these highs at the time of writing.
The currency pair has inched higher over the past three days as the US dollar recovered boosted by rising US Treasury Yields. The rising global crude oil prices as tracked by the West Texas Intermediate had a minimal impact on the commodity-linked loonie against the resurgent greenback. The currency pair traded sideways for most of today’s session until the release of Canada’s labour force survey for December. According to Statistics Canada, the country lost 62,600 jobs in December, which was way above analysts estimates of 27,500 job losses. However, Canada’s unemployment rate remained stable at 8.6% as expected.
The concurrent release of the US non-farm payrolls report for December also had a muted impact on the pair. According to the US Bureau of Labor Statistics, the country lost 140,000 jobs in December 2020, as opposed to adding 71,000 jobs as expected. The pair later inched higher as the greenback remained stronger than the loonie.
The currency pair’s future performance is likely to be  affected by crude oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.2688 as at 16:01 GMT having fallen from a high of 1.2722. The CAD/JPY currency pair was trading at 81.79 having dropped from a high of 81.99.
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Original from: www.earnforex.com