USD/CAD Exchange Rate Prediction – The Dollar Continues to Rally on Strong JOLTs Report

The dollar moved higher against the Loonie on Monday but was unable to push through resistance. Strong gains in Treasury yields and a drop in commodity prices helped buoy the greenback. U.S. Treasury yields moved higher following Friday’s stronger than expected U.S. employment report. A U.S. infrastructure bill is expected to move forward, which should further buoy growth. The number of jobs available in the U.S. surged above 10 million in June, which is the highest on record.

Technical Analysis

The USD/CAD moved higher but failed to recapture resistance seen near the 200-day moving average at 1.2577. Support is seen near the 9-day moving average at 1.2514. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with decelerating trajectory which points to consolidation.

JOLTs shows Strong Gains

Job openings in the U.S. economy jumped to more than 10 million in June, the highest on record. There were 10.1 million open jobs on the final day of June, the report from the Labor Department said, up from 9.2 million in May. Expectations were for 9.1 million openings. The jump came as the quits rate increased while the layoffs and discharges rate was unchanged, reflecting increased workers’ bargaining power and employment options.