USD/CAD tumbles to six days lows after Canadian jobs report

• Loonie soars across the board after the Canadian employment report.
• USD/CAD turns negative for the week, retreats further from two-month highs.
• US dollar mixed amid higher equity prices.

The USD/CAD dropped sharply from 1.2765 and bottomed at 1.2693, weakened by the numbers of the Canadian employment report that surpassed expectations. The loonie rose across the board and became the best G10 performer.

As of writing, USD/CAD is hovering around 1.2705/10, down for the third consecutive day as it continues to retreat from the monthly high it hit on Tuesday at 1.2900. It turned negative for the week and is on its way of another weekly close between 1.2770 and 1.2690 for the seventh week in a row, and above the 20-week Simple Moving Average, currently at 1.2685.

The combination of an improvement in risk sentiment after comments from Russian Putin and economic data pushed USD/CAD sharply lower on Friday. In Wall Street, the Dow Jones gains .070% and the S&P 500 rises by 0.34%.

Data released on Friday, showed the Canadian economy added 337K jobs in February, the best months since September 2020, and above the 160K of market consensus. “Today's print should give the BoC added conviction that slack has been absorbed and that rates need to move higher. We continue to look for rate hikes at the next three meetings (Apr, Jun, & Jul) along with a QT announcement in April,” explained analysts at TD Securities.

USD/CAD weekly chart