FxWirePro: USD/CAD drops after U.S. adds only 73K Jobs in July

• USD/CAD slipped sharply lower on Friday as the dollar dipped as weaker than expected U.S. jobs data prompted markets to add to rate cut bets from the Federal Reserve.

• The U.S. economy added 73,000 nonfarm payrolls last month, below expectations for 110,000   of economists. The unemployment rate ticked up to 4.2%..

• Softer labor market data came just a day after President Trump signed an executive order imposing new tariffs of 10% to 41% on imports from several major trading partners. The U.S. set rates at 25% for India, 20% for Taiwan, 19% for Thailand, and 15% for South Korea.

• Tariffs on Canadian goods were raised to 35% from 25% for items outside the U.S.-Mexico-Canada agreement, while Mexico received a 90-day exemption to negotiate a broader trade deal.

• Money markets are now pricing in a roughly 90% chance of a Fed rate cut in September, as traders increased bets following soft U.S. labor data..

• Immediate resistance is located at 1.3888(50%fib), any close above will push the pair towards 1.3968(May 20th high).

• Support is seen at 1.3762(38.2%fib) and break below could take the pair towards 1.3712(SMA 20).

Recommendation: Good to sell  around 1.3800, with stop loss of 1.3880 and target price of 1.3720