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By Kenny Fisher

In economic news, it's a slow start to the week, with just one U.S. release, a speech from FOMC member James Bullard in St. Louis. In Canada, Housing Starts dropped in November and missed the estimate. There was good news on Friday as employment data in both countries was strong.

U.S. employment numbers continue to look sharp. On Friday, Non-Farm Payrolls was almost unchanged, coming in at 203 thousand. This was well above the estimate of 180 thousand. The Unemployment Rate dropped from 7.3% to 7.0%, beating the estimate of 7.2%. Earlier in the week, Unemployment Claims dropped for the third straight week. The strong numbers are sure to increase the pressure on the Fed to taper QE when it meets later in December. The Fed has said that a stronger employment picture is a prerequisite to tapering, and last week's numbers certainly increase the possibility of the Fed taking action at its December policy meeting.

Canadian employment numbers also looked sharp late last week. Employment Change jumped to a three-month high, posting a sharp gain of 21.6 thousand. This was much higher than the estimate of 12.3 thousand. Meanwhile, the unemployment rate remained constant at 6.9% for the third straight month, matching the forecast. Despite the solid data, the Canadian dollar couldn't make any headway against its U.S. counterpart, thanks to excellent US employment numbers.

USD/CAD for Monday, December 9, 2013

Forex Rate Graph 21/1/13

USD/CAD December 9 at 15:10 GMT

USD/CAD 1.0663 H: 1.0670 L: 1.0642

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0502 1.0573 1.0652 1.0783 1.0852 1.0945

  • USD/CAD is trading quietly in Monday trading. The pair touched a low of 1.0644 in the North American session but has since edged higher.
  • On the upside, the pair is facing resistance at 1.0783. This is followed by a resistance line at 1.0852, which has held firm since November 2009.
  • 1.0652 continues to provide support. This line was breached earlier on Monday and could face more pressure during the North American session.
  • Current range: 1.0652 to 1.0783

Further levels in both directions:

  • Below: 1.0652, 1.0573, 1.0502, 1.0442 and 1.0337
  • Above 1.0783, 1.0852, 1.0945 and 1.10

OANDA's Open Positions Ratio

USD/CAD ratio is unchanged in Monday trading. This is reflected in the current movement of the pair, which has not shown much movement at the start of the trading week. A majority of the open positions in the USD/CAD ratio are short, indicating a trader bias towards the Canadian dollar moving to higher ground.

It's a slow start for USD/CAD this week, and this subdued activity could continue during the day, with no economic data being released from the U.S. on Monday.

USD/CAD Fundamentals

  • 13:13 Canadian Housing Starts. Exp. 195K. Actual 192K.
  • 18:05 US FOMC James Bullard Jack Speaks.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Source: USD/CAD - Steady As Week Starts Off Slowly