Canadian Employment Data Leaves CAD Directionless

The Canadian dollar ended the session without strong moves in either direction as today’s employment report sent confusing signals to the market, giving no edge either to bulls or to bears.
Canadian employment grew by 25,800 jobs in May after falling by 28,900 in the preceding month. This reading was in line with expectations of most market participants. The unemployment rate ticked up by 0.1 percentage point to 7.0 percent. And this was a surprise as specialists predicted it to stay unchanged.
After digging into details of the report, analysts pointed out that it was rather negative despite showing growth of employment. The growth was led by part-time jobs, while the number of full-time positions dropped actually. Coupled with signs of slowing economic growth such data leaves the Canadian currency in a very vulnerable position.
USD/CAD ticked up from 1.0924 to 1.0929. EUR/CAD slipped from 1.4922 to 1.4911. CAD/JPY was up from 93.71 to 93.79 after dropping to the daily minimum of 93.42.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *