Statistics Canada released their monthly Labor Force Survey, which recorded the changes to the underlying employment conditions in the country for the month of March.
According to the findings of the report, the Canadian labour force lost over a million jobs last month due to the coronavirus fallout. Additionally, the unemployment rate has jumped to 7.8 per cent from 5.6 per cent that was recorded in February.
In doing so, the actual unemployment numbers missed the consensus forecasts, which were projecting a more gradual deterioration in unemployment to 7.4 per cent.
Canada Unemployment Rate. Image source: TradingEconomics.com
The Canadian labour market is likely to suffer more in the foreseeable future as the government continues to impose stringent policies of restricted movement, in a bid to curtail the spread of the virus.
This, in turn, is going to continue exerting pressure on the Canadian dollar, which is already reeling from the collapsed oil prices.
Nevertheless, the USDCAD is currently forming a bullish pennant pattern, which might compel some traders to enter long, thereby boosting the buying pressure that is currently leading the price action.
If the USDCAD fails to break out above the pennant and instead breaks down below the major support level at 1.39545, a new trend reversal is likely to form.
USDCAD 4H Price Chart. Image source: Trendsharks ©, created with TradingView.com
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