Canadian Dollar Plunges as Employment Falls & Trade Deficit Grows

The Canadian dollar tumbled today after Canada’s employment fell unexpectedly and the trade balance deficit showed a surprise increase to a record high.
Canadian employers reduced the number of available jobs by 31,200 in July. Forecasters were totally wrong with their promises of an increase by about 10,200. The unemployment rate rose from 6.8% to 6.9%, within expectations.
Adding to the woes of the Canadian currency, Canada’s trade balance logged a record trade deficit of $3.6 billion in June. The only positive indicator was the Ivey PMI that surprised analysts, surging from 51.7 to 57.0 last month.
As for news outside of Canada, prices for crude oil dropped, fueling the downside momentum of the loonie.
USD/CAD rose 1.1% from 1.3018 to 1.3163 as of 20:10 GMT today. EUR/CAD gained from 1.4487 to 1.4593. CAD/JPY went down from 77.74 to 77.27.

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