USD/CAD: US Dollar Gives Back Gains Against the Canadian Dollar Following Friday’s Massive NFP Beat

The US Dollar was mostly unchanged to slightly lower against the Canadian dollar on Monday following Friday’s extensive gains on better-than-expected labour market reports.

To recall, the US economy added a whopping 266K new jobs in November, beating market expectations of a 181K raise and giving the Fed more reasons to stick to their current interest rates. The Unemployment rate fell to a 50-year low of 3.5% and wages rose as well, as shown by the Friday report.

Canadian numbers were less impressive. Employment fell by 71.2K and the unemployment rate rose to 5.9%, missing forecasts of a 10K raise and a 5.5% unemployment, respectively.

Investors had already positioned themselves on the futures market accordingly, as the latest CoT report showed. Covering futures positioning in the week through last Tuesday, CAD investors added only $82 million to their net long positions, taking the total to $1.6 billion. However, bullish bets in the US dollar rose by $700 million, taking the total to a fresh 6-week high of $19.6 billion.

On the trade war front, markets are still waiting for signs of progress in trade talks between the world’s two largest economies. With only seven days to go until the December 15 tariff deadline, it’s still unclear whether a deal will be signed.

White House economic adviser Larry Kudlow said late last week that the amount of US agricultural products that China was willing to purchase remained on of the issues in the talks.

From a technical standpoint, the USD/CAD pair faced some selling pressure at the 61.8% Fib level that aligns with a horizontal resistance zone of the recent trading range, pushing the price lower today. As of 2:48 p.m. London time, the USD/CAD pair traded at 1.3240.

Strong moves caused by the NFP missing or beating market forecasts to a large extent are usually reversed on Monday, which can also be observed in today’s trade.

Friday’s high of 1.3270 will likely cap further gains in the short run, while the US dollar could be on its way to give back more gains against the Canadian dollar by the end of the trading day. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.