The Canadian dollar is recovering ground across the board on the back of a rally in crude oil prices. USD/CAD has fallen a hundred pips from daily highs, falling 60 pips during the last sixty minutes.
The pair peaked earlier at 1.3792, the highest level since February 2016, then it consolidated between 1.3785 and 1.3750. It even held inside the range after the release of key economic data from the US and also from Canada.
After the beginning of the US session, as crude oil accelerated to the upside, USD/CAD broke to the downside. It dropped below 1.3700 and bottomed at 1.3685, hitting a 2-day low.
Price remains near the lows, holding a bearish tone. It is making the most significant correction in more than a week. On a daily basis, if the Loonie manages to end the day in positive territory, it would be the first gain versus the US dollar since April 20.
Little impact from employment data
The Canadian jobs report showed lower-than-expected numbers and triggered a decline of the Loonie in the market, except against the US dollar. USD/CAD remain unchanged. The negative impact of Canadian data, was offset by the NFP. US labor market data surpass expectations but markets did not celebrate the details of the report. The USD lost momentum and limited the upside in the USD/CAD.