Archived IMT (2009.01.09)

More bad Canadian job news fuelling the rally in European FX vs CAD.

CAN Dec payrolls fell by 34K--another worse than expected figure--while unemp rate rose to higher than exp 6.6% from 6.3% affirming the lag in job deterioration between US and CAN. GBPCAD knives through 1.81 ( in line with latest article) but EURCAD struggles to follow through. USDCAD eyes key support at 1.1640--100day MA and the 50% retracement of the rise from the Sep 2008 low to the Oct 2008 high. Negative US data surprise and positive CA data surprise may break this level onto 1.1520. Upside capped at 1.1970.