FxWirePro: USD/CAD climbs to 18-month peak after sharp Canadian employment decline

• USD/CAD climbed to 18-month peak on Friday as weaker-than-expected Canadian jobs data strengthened expectations that the Bank of Canada will hold rates later this month.

• Canada lost 68,300 jobs in September, pushing unemployment higher and wiping out all employment gains made earlier this year..

• The surprise decline followed a loss of 41,700 jobs in August, while the unemployment rate edged up to 6.5% in September from 6.4%.

• September was the first full month under new US tariffs on Canada, but job losses were concentrated in the public sector, particularly healthcare, social assistance and education, amid cuts to international student permits.

• Money markets are no longer pricing in ​a rate increase from the Bank of Canada this month, although expectations of a 25 basis point hike had edged ‌higher. Markets ⁠expect a 25-basis-point increase in December.

•  Immediate resistance is located at 1.4293(23.6%fib), any close above will push the pair towards 1.4357(Higher BB.).

• Support is seen at 1.4191(38.2%fib) and break below could take the pair towards 1.4123 (SMA 20).

Recommendation: Good to buy around 1.3220 with stop loss of 1.3150 and target price of 1.3300