USD/CAD still in a corrective mode

If ever you wanted to see the potential impact a 4pm London FX fix can have then look no further than the price action on the USD/CAD last Friday. Granted it was the final 4pm fix of the year, so liquidity could have been in short supply. Nevertheless, please look at a chart of the price action and you will see what I am talking about here. The USD/CAD slumped from above 1.3260, to a low at 1.3180, right as the clock struck 4pm here in London. So, there was no doubt this was a fix related move and endorsed by the fact that the US dollar bounced straight back after it was out of the way. The USD/CAD later closed out 2023 at 1.3239. It has made some further progress so far today, but it is yet to rise above the 1.3265 high seen earlier on Friday afternoon. We have some important Canadian jobs numbers later this week on Friday and a weaker employment picture for December is expected. The USD/CAD rebound from the most recent lows at 1.3177 is still corrective, but it could have more of a correction to play out from here. The range seen so far today has been covered by 1.3229 to 1.3258. It is just now trading at 1.3251