FxWirePro: USD/CAD rises sharply as jobs data boosts jumbo rate cut bets by BoC

• USD/CAD rose higher  on  Friday    as Canadian dollar weakened as a surge in Canada's unemployment rate fueled expectations of another significant interest rate cut from the Bank of Canada next week.

•  The jobless rate increased to a higher-than-expected 6.8% in November, according to Statistics Canada, marking a rise of 1.7 percentage points since April 2023.

• In addition to signs of labor market weakness, the average hourly wage growth for permanent employees slowed to an annual rate of 3.9% in November, down from 4.9% in October. This marks the slowest wage growth since June 2023, when the rate was also 3.9%.

• Investors see a roughly 80% chance of a half-percentage-point rate cut from the BoC on Dec. 11, up from 58% before the data.

•  Immediate resistance is located at 1.4155(23.6%fib), any close above will push the pair towards 1.4186 (Higher BB).

• Support is seen at 1.4022(38.2%fib) and break below could take the pair towards 1.4000(Psychological level).

Recommendation: Good to buy around 1.4155, with stop loss of 1.4000, and target price of 1.4200