The USD/CAD pair rose as the U.S dollar gained strength after the jobs report, as the Nonfarm payrolls increased by 200,000 jobs, well above median estimates of 155,000 jobs, furthermore, unemployment rates plummeted cheerfully to 8.5 percent from 8.7 percent in December.
Moreover, the euro declined fuelled with concerns that the euro zone might not be able to find a comprehensive solution to the debt crisis, which will make it more difficult for European banks to raise capital, thereby might become more exposed.
Now, eyes will be spotted on this year, and the performance of the European economy, especially after the ECB lent the European banks huge amount of money, and if that money will help the euro zone to continue recovery process amid big challenges.
The USD/CAD pair could still rise if pessimism continues to dominate markets, as uncertainty remains the main theme in markets, and that could also lead to deep fluctuations for the USD/CAD pair.
Monday January 9:
Canada will release the report of building permits for the month of November; it is expected to show a decline by 0.4%. Moreover, eyes will still focused on Europe and the crises that could cause any change in trading.