FxWirePro: USD/CAD outlook weaker on renewed downside pressure

• USD/CAD slipped lower on Friday as the Canadian dollar strengthened after data showed Canada’s unemployment rate fell in November.

• Canada’s unemployment rate defied expectations once again, falling to a 16-month low in November as a strong rise in part-time employment lifted overall job gains for a third consecutive month, data showed on Friday.

• The unemployment rate fell 0.4 percentage points in November to 6.5%, its lowest level since July 2024, Statistics Canada said, noting the decline was driven by 54,000 net job gains, mainly among youth..

• The average hourly wage of permanent employees   a key gauge monitored by the Bank of Canada for inflation signals  held steady at 4% in November, unchanged from the previous month.

• The labour force report is the final major data release before the Bank of Canada’s policy decision next week. Money markets are pricing in nearly a 93% chance of a hold, and Friday’s figures are likely to further reinforce those expectations.

•  Immediate resistance is located at 1.3913(50%fib), any close above will push the pair towards 1.3961(Daily high).

• Support is seen at 1.3856(Daily low) and break below could take the pair towards 1.3771(38.2%fib).

Recommendation: Good to sell  around 1.3880, with stop loss of 1.3980 and target price of 1.3800