USDCAD unable to catch a rebound
Gary Christie September 5, 2020 4:38 AM
Thursday's strong advance in the pair failed to continue in Friday's session.
The US Dollar was bearish against most of its major pairs on Friday with the exception of the CHF. On the US economic data front, Change in Nonfarm Payrolls decreased to 1,371K on month in August (1,350K expected), from a revised 1,734K in July. The Unemployment Rate fell more than anticipated, to 8.4% on month in August (9.8% expected), from 10.2% in July.
On Monday, no major economic data will be released as US markets will be closed to observe Labor Day.
The Euro was bearish against most of its major pairs with the exception of the CHF. In Europe, Research firm Markit has published August Construction PMI in the U.K. at 54.6 (vs 58.3 expected) and at 48.0 in Germany, vs 49.7 in July. The German Federal Statistical Office has reported July factory orders at +2.8%, below +5.0% on month expected.
The Australian dollar was bullish against most of its major pairs with the exception of the CAD.
The largest moving FX pair on Friday was the USD/CAD which remains under pressure after dropping 63 pips to 1.3065. On a daily chart, the bearish trend remains in play as the price action remains inside a bearish channel. The pair remains capped by its 20-day moving average (in red). Look for a continuation lower to test Jan lows near $1.2955 unless the pair can make a reversal above the 20-day moving average near 1.3215.
Source: GAIN Capital, TradingView
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