The Canadian dollar fell today after the release of jobs data that showed an unexpected drop of employment. The drop was fairly limited, though the currency reached a multi-year low versus the Japanese yen.
The number of employed people in Canada fell by 700 in June following the increase by 13,800 in May. Market participants were counting on an increase by 5,500. At the same time, the unemployment rate ticked down by 0.1 percentage point to 7.8% while analysts had forecast an increase by the same rate.
The Bank of Canada conducts a policy meeting next week. While economists do not anticipate change to the existing policy, this week’s row of poor economic indicators give reason for policy makers to consider monetary stimulus in the future.
USD/CAD went up from 1.2998 to 1.3040, though it backed off from the daily high of 1.3088. EUR/CAD was up a little from 1.4379 to 1.4410. CAD/JPY dropped from 77.51 to 77.01, and its session minimum of 76.80 was the lowest since July 2012.
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