U.S. Session Forex Recap – Apr. 11, 2016

  • Canadian economy added 40.6K jobs in March vs. 10.4K consensus
  • Canada’s unemployment rate dropped from 7.3% to 7.1%
  • U.S. wholesale inventories down by 0.5% vs. estimated 0.2% dip
  • Baker Hughes U.S. oil rig count down from 362 to 354
  • Fed official Dudley: Cautious gradual approach to rate hikes needed

The Loonie was one of the biggest forex winners last Friday, thanks to crude oil price gains and upbeat Canadian jobs data.

Major Events:

Strong jobs figures from Canada – The Canadian employment report for March turned out much better than expected, as the economy added 40.6K positions during the month versus the projected 10.4K increase. This was enough to bring the unemployment rate down from 7.3% to 7.1% instead of holding steady as expected.

Components of the report indicated that full-time hiring picked up, led by gains in healthcare and social assistance, accommodation and food services, and scientific and technical services.

Another crude oil rally – According to data from drilling company Baker Hughes, the number of U.S. oil rigs fell from 362 to 354 in the previous week, once again easing fears of increased production and oversupply. This marks the third consecutive weekly decline in rig counts, bringing the current number down to its lowest level since November 2009.

WTI crude oil popped above the $40/barrel level to high of $40.30/barrel while Brent crude oil peaked at $42.23/barrel.

Major Currency Movers:

CAD – The Canadian currency was the star of the show on Friday, rebounding against most of its forex rivals.

USD/CAD fell from the 1.3100 area to a low of 1.2952, CAD/JPY found support at 83.00 and rallied to a high of 83.72, EUR/CAD dipped to a low of 1.4760, and GBP/CAD tumbled to a low of 1.8284.

JPY Traders still don’t seem to be buying the BOJ’s bluff about intervening in the forex market, as the yen was pushed higher until profit-taking took place.

USD/JPY reached a low of 107.88 before recovering, EUR/JPY tested support near the 123.00 major psychological mark, GBP/JPY fell to a low of 152.18, and AUD/JPY is down to the 82.00 handle.

Watch Out For:

  • 12:50 am GMT: Japanese core machinery orders (-11.8% expected, +15.0% previous)
  • 2:30 am GMT: Australia home loans (+2.1% expected, -3.9% previous)
  • 2:30 am GMT: Chinese CPI  y/y (2.4% expected, 2.3% previous)
  • 2:30 am GMT: Chinese PPI y/y (-4.6% expected, -4.9% previous)

See also:

Asian Session Recap

London Session Recap

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