Canadian Dollar Drops on Expectations for Employment Data

Canadian dollar is lower today, dropping against its major counterparts, as Forex traders look ahead to July’s employment data, which many expect to be somewhat disappointing.

Following the US jobs report, which was weaker than expected, some believe that Canada’s jobs report for July, which will be released on August 9, will also be weaker than originally thought. The news that the Canadian economy continues to struggle is not helping the loonie against its major counterparts.
The latest trade gap data has been released by Statistics Canada, and shows that the gap dropped to C$469 million in June, from the C$781 million in May. The deficit was smaller than expected, but that isn’t helping the loonie much. Nor is the fact that oil prices remain above $106 a barrel. There is more focus on the fact that oil prices are lower now than they were at today’s open.
In fact, with risk appetite fading and with commodity prices dropping, it is little surprise that the loonie is having difficulty today. Many high beta currencies are struggling along with equities and commodities.
At 13:38 GMT USD/CAD is higher, up to 1.0379 from the open at 1.0361. EUR/CAD is also higher, up to 1.3800 from the open at 1.3742. GBP/CAD is up to 1.5929 from the open at 1.5910.

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