USD/CAD down 68 pips to 1.3336
The US dollar is under a broad assault after soft wage growth numbers undermined a strong jobs report.
The US economy added 242,000 jobs in the month but hourly earnings fell 0.1% compared to a 0.2% rise expected. After a quick dollar rally, it's unwound and has come under increasing pressure.
At the same time, oil prices have risen to the best levels since January 5. WTI crude is up 87-cents to $35.44 The combination is a double-whammy for USD/CAD as it sinks more than 120 pips from the session high of 1.3471.
A big week is coming up for the Canadian dollar. The BOC decision is Wednesday and the Canadian employment report is on Friday.
The near-term support is at 1.3289 with more at 1.3050 and 1.2835 is a major level.
Like I said in today's video, this is the retracement phase of the commodity collapse. Oil is finding buyers on dips and even bad news is being brushed aside. That points to a continued rebound up to $38-$40.
