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Contrasting Jobs Data Sees USDCAD Plunge

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CAD as comfortably the best performer, surging against all others as the US and Canadian jobs reports diverged. While the US nonfarm payrolls release missed expectations (jobs added 245k vs. Exp. 460k), the Canadian counterpart firmly beat expectations, with 62,000 jobs added vs. forecasts of just 20,000. As a result, USD/CAD fell further, hitting new multi-year lows of 1.2790 in the process.

Sterling remains a victim of the ebb and flow of Brexit headlines, with negotiations concluding on Friday without a firm commitment. Hopes still clearly run high for a deal by the end of the weekend however, with GBP/USD touching a new multi-year high above 1.35 ahead of the close. A lack of a deal by Sunday evening would be a disappointment, and could prompt another volatile week for the currency.

Focus in the coming week turns to the German ZEW Survey, UK industrial/manufacturing production data and US inflation numbers. Central bank rate decisions are due from the Eurozone, Canada and Brazil.

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