| Technical Ranges
CAD, USD, EUR, GBP & JPY
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USD/CAD
Support: 0.9888
Resistance: 0.9999
CAD/JPY
Support: 82.55
Resistance: 83.50
EUR/CAD
Support: 1.3050
Resistance: 1.3197
EUR/USD
Support: 1.3127
Resistance: 1.3233
GBP/USD
Support: 1.5460
Resistance: 1.5594
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Currency Commentary
EUR, USD, CAD, GBP , JPY
EUR: The better-than-expected ADP employment figure has given a lift to the
US dollar, causing the EUR/USD to drop a quick 40 pips breaking
underneath the 1.3200 support level to reach a weekly low in 1.3170. The
pair remains just above that mark at time of writing, where it searches
for traction in order to bounce to the upside.
Surprising
analysts’ forecasts, ADP released a nearly 300K employment change over
the month of December compared to the 93K the month prior. The robust
figure gives a boost of optimism ahead of the always highly anticipated
monthly nonfarm payrolls due out on Friday.
USD: Automated Data Processing presented today the US Employment Change
report reading at 297,000 new jobs created in December. This figure
represents the largest single gain since in the report's history.
Last
month's gain of 93,000 seems modest, but the forecast by market
analysts at 100,000 refuses that stand. This month's gain is the 11th
consecutive on the way to recovery. If the ISM Non-Manufacturing results due @ 10am today, come out positive as well...the USD/CAD will remain in parity range for the day.
Markets looking forward to this Friday's Non-Farm Payroll data.
CAD: Commodities and the equity markets were slightly down earlier this morning, the news of the positive ADP data..may change that trend once Wall Street opens. Another great day for buyers of the USD.
Expected range for the USD/CAD...similar to yesterday..higher 0.9800 to higher 0.9900 levels.
GBP: Cable today has been consolidating under the 1.5600 barrier over the
European session, testing the resistance at that mark on numerous
occasions but failing to settle above. Around mid-day, the pair reached
as high as 1.5596 but quickly turned to the downside once again,
reaching session lows just under 1.5560.
JPY:
The US dollar showed a quick bought of selling pressure in the last
hour, allowing the USD/JPY to break past resistance momentarily and land
a weekly high in 82.33. The pair quickly settled off that peak, yet
remains poised around 82.25 in range of its most recent maximum.
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" Positive U.S. data strengthening CAD "....
" If you get a good number out of the U.S., it;s going to basically flow into Canada at some point".....
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This could well be the year of the loonie.
The Canadian dollar
moved higher against the American currency Wednesday as a strong
indicator of U.S. job growth came in much higher than forecast. The loonie was up 0.18 of a cent to 100.33 cents (U.S). The
Canadian currency had been below parity earlier in the morning but
strengthened after U.S. payroll company ADP forecast that the American
economy created 297,000 jobs during December. Economists had expected
growth of around 100,000. “The Canadian dollar is doing better because a good U.S. number
should be good for Canada,” said John Curran, senior vice-president
CanadianForex. “If you get a good number out of the U.S., it's going to basically flow into Canada at some point.” The ADP data was released two days before the release of the U.S. non-farm payrolls report for December. Economists
have expected the official American government data to show that the
U.S. economy created about 150,000 jobs during December while the jobless rate edged down 0.1 per cent to 9.7 per cent. The loonie advanced despite lower commodity prices.
"USD- ADP numbers came out much higher than expected ..."..
"We've been building towards a big number...That's pointing to a big payroll number ahead ".....
U.S. private employers added 297,000 jobs in December, the biggest
increase since at least 2001, compared with a revised gain of 92,000 in
November, a private report by a showed Wednesday.
The median estimate from 27 economists surveyed by Reuters for the ADP
Employer Services report was for a rise of 100,000 private-sector jobs
in December.
The November figure was originally reported as a gain of 93,000.
U.S stock index futures pared losses after the data, while U.S. Treasury prices
fell, and the dollar extended gains against the yen and euro.
“We’ve been building towards a big number ... That’s pointing to a big payroll
number ahead, and I think we’ll get a big healthy report on Friday,”
said Andrew Wilkinson, senior market analyst at Interactive Brokers
Group in Greenwich, Connecticut.
The ADP figures came ahead of the government’s much more comprehensive
labour market report coming on Friday, which will include both public
and private-sector employment.
That report is expected to show a rise in overall non-farm payrolls of
140,000 in December, based on a Reuters poll of analysts, but a rise in
private payrolls of 145,000.
Economists often use the ADP report to fine-tune their forecasts for the
payrolls numbers, though it is not always accurate in predicting the
outcome.
The ADP report is jointly developed with Macroeconomic Advisers LLC.
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| Main USD/CAD data today: |
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1. USD- ADP employment change & ISM Non-manufacturing data.
CAD - No relevant data.
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