{"id":50844,"date":"2019-12-06T20:35:25","date_gmt":"2019-12-07T04:35:25","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=50844"},"modified":"2019-12-06T20:38:48","modified_gmt":"2019-12-07T04:38:48","slug":"forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/12\/06\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\/","title":{"rendered":"Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate"},"content":{"rendered":"\n<p><a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/11\/03\/from-shocks-to-trade-war-damage-bank-of-canada-changes-tune\/\">My now wavering bullish case for the Canadian dollar (FXC)<\/a> took a major hit with <a rel=\"noreferrer noopener\" aria-label=\"the November, 2019 Labour Force Survey (opens in a new tab)\" href=\"https:\/\/www150.statcan.gc.ca\/n1\/daily-quotidien\/191206\/dq191206a-eng.htm?HPA=1\" target=\"_blank\">the November, 2019 Labour Force Survey<\/a>. Statistics Canada reported worsening unemployment rates both sequentially and year-over-year. November&#8217;s 5.9% unemployment rate was an increase from October&#8217;s 5.5% and the 5.6% in November, 2018. The chart below suggests an end to the downtrend in the unemployment rate in place since the 2015\/2016 oil shock peak. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"550\" height=\"409\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_CanadaUnemploymentRate.png\" alt=\"The Canadian unemployment rate looks like it has bottomed with the first higher low since 2015.\" class=\"wp-image-50846\"\/><figcaption>The Canadian unemployment rate looks like it has bottomed with the first higher low since 2015.<br><strong>Source: <a href=\"https:\/\/www150.statcan.gc.ca\/n1\/daily-quotidien\/191206\/cg-a002-png-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Statistics Canada (opens in a new tab)\">Statistics Canada<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>The weak jobs report spooked the currency market as the Canadian dollar sold off broadly against major currencies. The USD\/CAD pair reacted particularly sharply given the strength in <a href=\"https:\/\/www.bls.gov\/news.release\/archives\/empsit_12062019.htm\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"the U.S. jobs report (opens in a new tab)\">the U.S. jobs report<\/a> the same morning.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1712\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_USDCAD-scaled.png\" alt=\"The U.S. dollar versus the Canadian dollar (USD\/CAD) jumped back to 200DMA resistance in reaction to a weak jobs report.\" class=\"wp-image-50845\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_USDCAD-scaled.png 2560w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_USDCAD-768x514.png 768w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_USDCAD-1536x1027.png 1536w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_USDCAD-2048x1370.png 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><figcaption>The U.S. dollar versus the Canadian dollar (USD\/CAD) jumped back to 200DMA resistance in reaction to a weak jobs report.<br><strong>Source: <a href=\"https:\/\/www.tradingview.com\/x\/wRO3RMmv\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"TradingView (opens in a new tab)\">TradingView<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>Despite the rise in the unemployment rate, potentially good news exists, and it is good enough to keep me long the Canadian dollar. The <strong>number<\/strong> of jobs grew year-over-year by 293,000, a 1.6% gain. As a bonus, the majority of this increase came from full-time work. Moreover, the total number of hours worked increased 0.2%. <\/p>\n\n\n\n<p>From a technical perspective, I think USD\/CAD will remain rangebound for the foreseeable future. The 200-day moving average (DMA) has flattened, the double-bottom from July and October looks confirmed, and overhead resistance is holding strong at the peaks formed since August. However, under the current economic circumstances, I will exit my short USD\/CAD position on a breakout above the range. <\/p>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<p>Full disclosure: short USD\/CAD<\/p>\n","protected":false},"excerpt":{"rendered":"<p>My now wavering bullish case for the Canadian dollar (FXC) took a major hit with the November, 2019 Labour Force Survey. Statistics Canada reported worsening unemployment rates both sequentially and year-over-year. November&#8217;s 5.9% unemployment rate was an increase from October&#8217;s 5.5% and the 5.6% in November, 2018. The chart below suggests an end to the &#8230; <a title=\"Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/12\/06\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[235,59,20,62,982],"tags":[296,297,197,469],"class_list":["post-50844","post","type-post","status-publish","format-standard","hentry","category-canada","category-economy","category-forex","category-technical-analysis","category-trading-range","tag-canadian-dollar","tag-fxc","tag-unemployment","tag-usdcad"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/12\/06\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"My now wavering bullish case for the Canadian dollar (FXC) took a major hit with the November, 2019 Labour Force Survey. Statistics Canada reported worsening unemployment rates both sequentially and year-over-year. November&#8217;s 5.9% unemployment rate was an increase from October&#8217;s 5.5% and the 5.6% in November, 2018. The chart below suggests an end to the ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2019\/12\/06\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-07T04:35:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-07T04:38:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/12\/191206_CanadaUnemploymentRate.png\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate\",\"datePublished\":\"2019-12-07T04:35:25+00:00\",\"dateModified\":\"2019-12-07T04:38:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/\"},\"wordCount\":276,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2019\\\/12\\\/191206_CanadaUnemploymentRate.png\",\"keywords\":[\"Canadian dollar\",\"FXC\",\"unemployment\",\"USD\\\/CAD\"],\"articleSection\":[\"Canada\",\"economy\",\"Forex\",\"Technical Analysis\",\"Trading Range\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2019\\\/12\\\/06\\\/forex-critical-canadian-dollar-reacts-to-a-bottoming-unemployment-rate\\\/\",\"name\":\"Forex Critical: Canadian Dollar Reacts to a Bottoming Unemployment Rate - 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Statistics Canada reported worsening unemployment rates both sequentially and year-over-year. November&#8217;s 5.9% unemployment rate was an increase from October&#8217;s 5.5% and the 5.6% in November, 2018. The chart below suggests an end to the ... 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