The auction of French government bonds on Thursday showed that the demand was lower than last time, causing the market to worry about its rating down. The hike in Hungarian national debt auction prices also made the market under pressure. The US dollar was thus boosted and the Canadian dollar was weighed down. However, the employment data of the United States in the New York period was significantly higher. The improvement was positive for non-agriculture on Friday, and the USD/CAD climbed to the 1.0220 line before it was blocked.

The US dollar/Canadian dollar hit a rapid rebound in the 1.0115 level in early trading. As European stock markets opened higher after a slight rise, the European debt crisis continued to suppress investors’ risk appetite.

At the same time, there are reports that Hungary’s negotiations with the European Union and the IMF have stalled. The average yield of Hungarian’s intraday auction of 1-year bonds has risen sharply from 7.91% in December to a new high of 9.91% since 2009, and auction prices have not reached the previous level. aims. Investors worry that Hungary may go bankrupt.

France auctioned 7.963 billion euros on Thursday, slightly lower than the plan of 8 billion euros, and the oversubscription rate dropped significantly, among which the yield of 2021 bonds due to maturity rose from 3.18% to 3.29%, indicating a heightened uncertainty in the outlook for European debt. Investors worried that the sovereign rating of France may be lowered, suppressing lower risk assets. European stock markets expanded their losses after the auction of French bonds, and market sentiment continued to be under pressure. USD/CAD extended its gains and approached the 1.0200 mark.

Data released in early morning of New York showed that the Canadian Ivey Purchasing Managers Index fell to 53.6 in December from 57.1 in November, lower than the expected 59.1; and the US December Supply Management Association (ISM) non-manufacturing index was 52.0 liters in November. To 52.6, lower than expected 53.0. The weaker-than-expected economic data and the European debt crisis dragged US stocks lower after the opening and expanded the decline, pushing the USD/CAD to rise again, breaking the 1.0200 mark and hitting a high of 1.0220.

However, the strong US employment data during the day has eased the concerns of the U.S. economic fundamentals. Due to the close economic ties between Canada and the U.S., which also stimulated optimism about the Canadian economy, the U.S. dollar/capital increase was limited.

ADP employment in the United States increased significantly by 325,000 in December, an increase far exceeding the expected 178,000, and the highest level since records began in 2001. At the same time, the number of jobless claims for the first time in the US on December 31 decreased by 15,000 to 372,000, further indicating that the US employment market began to stabilize as 2011 ended.

In addition, the dispute between Iran and the West has gradually escalated today, and the high oil price also provides support for the Canadian dollar.

From a technical point of view, the uptrend of the US dollar/Canadian dollar was hindered after touching the 50-day moving average. Since the exchange rate fell below the finishing range on January 3, the 20-day moving average and the 50-day moving average formed a relatively large repression at the top. It is expected that the midline exchange rate will still remain unchanged. Will go lower. Support levels focus on the December 6 low of 1.0050.


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