USD/CAD Surges Amid Canada's Job Losses and Strong US Employment Data

The Canadian Dollar declined significantly after Canada's employment report revealed a loss of 41.7K jobs in August, which was sharply below market expectations for a 15K increase.

In contrast, the US Dollar strengthened following the release of the US Nonfarm Payrolls (NFP) data, which showed an unexpected surge of 162K jobs in August, exceeding market expectations by a wide margin of 56K.

The combination of job losses and slower wage growth in Canada weighed heavily on the Canadian Dollar, amplifying the USD/CAD rally following the releases. The pair gained nearly 80 pips, rising 0.39% on the day to trade around 1.3850 at the time of writing.

The technical analysis suggests that rallies may be vulnerable to selling pressure despite the bullish momentum. Immediate resistance is seen at 1.3825, with a deeper floor at 1.3765 if the pair breaks below it.