Canada: Jobs doubling market consensus – TDS

Employment data in Canada showed great numbers but failed to cause an impact in the markets, as analysts at TD Securities notes. They think the USD/CAD pair should top at 1.33.

Key quotes

“The Canadian economy added 35k jobs in January, effectively doubling the market consensus for a 17.5k increase.” 

“Market reaction was muted in Canada, which makes sense as this can be a very volatile number with big tails.”

“We continue to believe that the 1.33 area should mark another top in USD/CAD.”

“We could see a modest push towards 1.3350 in the very short-run but we prefer the risk/reward of fading rallies on breaks of 1.33 rather than expecting a sharp break higher.”

“We also think long CAD/CHF looks attractive at these levels.”