Canadian employment surprised well to the upside with job growth of 154K in November, smashing the market consensus for 37.5K. A much stronger jobs number alongside a disappointment in US payrolls leaves the CAD in a decent position to outperform into next week's Bank of Canada (BoC) meeting, according to economists at TD Securities.The November employment report crushed expectations with job growth of 154K, over 4x the market consensus for a 37.5k print. Full and part-time employment both saw large gains while unemployment fell to 6.0%, hours worked rose by 0.7% MoM, and wage growth accelerated to 3.0% YoY. As for the BoC, they are likely to take a pass at announcing anything major next week but given CAD price action in recent weeks, we suspect a lot of bad news is in the price and risk/reward looks more favorable on betting on a hawkish surprise. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Meanwhile, support was being provided by the 50-hour simple moving average and the zone that is located at the 1.2800 mark.

In a scenario where the rate passes the resistance zone of 1.2830/1.2837, the pair could immediately find resistance in the weekly R1 simple pivot point at 1.2847 and the 1.2850 level. Above these levels, the closest by known resistance was the weekly R2 simple pivot point at 1.2909 and the 1.2900 mark. Another scenario would have the rate decline below the 1.2800 mark and the 50-hour simple moving average. A potential decline of the pair is most likely going to look for support in the lower trend line of the November channel-up pattern.

Loonie Dominated By Strong NFP

Dec 03 2021