Dec 10, 2024 (MENAFN via COMTEX) --
(MENAFN - Daily Forex)
During the trading session on Friday, the US dollar's taken off like a rocket ship against the Canadian dollar for a couple of different reasons, but the first one would have been the employment numbers coming out of the United States and Canada. While Canada did come out at 50,500 jobs, roughly twice what was expected, the Americans also came out about four or 5,000 above, and at the same time, the unemployment rate in both of these countries ticked up. So, I think what you've got is nobody really knew what to do and we just followed the trend. However, the US economy does continue to outperform the Canadian economy and so many others.
The US Economy is Stronger
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So really with this, I think you've got a situation where you have to look at this through the prism of the stronger economy, the safety play, because the
US dollar is a safety play as well. Short-term pullbacks probably see quite a bit of buying pressure, and the size of the candlestick, 150 pips, is pretty big for this USD/CAD pair , as it does tend to be very choppy under most circumstances.
I think you've got a situation where we are going to do everything, we can to try to break higher, but this is an area that will more likely than not cause some headaches. You can see back in 2020; it was an area of extreme interest. In fact, once we broke through it, we couldn't break back above it and it sent the dollar plummeting all the way down to 1.20. Having said that, the
US dollar is strong against almost everything and I don't think the
Canadian dollar is going to fare any better than most other currencies. So, with that, I like the idea of buying cheap greenbacks whenever I get the opportunity
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