FxWirePro : USD/CAD falls as strong Canadian jobs data lifts loonie

• USD/CAD slipped  lower  as Canadian dollar firmed  after Canada’s labour market roared back with biggest-than-expected July hiring.

• Canada's economy added significantly more jobs than expected in July, while the unemployment rate fell to a two-year low, highlighting the labour market's resilience despite ongoing U.S. tariff pressures and global economic uncertainty.

• Statistics Canada reported that employment increased by 75,100 positions in July, supported by strong gains in both full-time and part-time jobs. The unemployment rate declined for a third consecutive month, falling from 6.5% to 6.4%, its lowest level since July 2024.

• The average hourly wages of permanent employees, a metric closely tracked by the central ​bank to gauge inflation expectations, grew 3.0% in July, down from 3.7% in June.This ​was the lowest ⁠since the 2.8% year-on-year increase recorded in February 2022.
               
•  Immediate resistance is located at 1.3981 (50%fib), any close above will push the pair towards 1.4056(SMA 20).

• Support is seen at 1.3917(Lower BB) and break below could take the pair towards 1.3864(61.8%fib).

Recommendation: Good to sell around 1.3950 with stop loss of 1.4050 and target price of 1.3900