DailyBubble News
DailyBubble News

USD/CAD falls sharply to 1.3630 as strong Canadian Employment numbers

The USD/CAD pair took a sharp dip to 1.3630 following the release of strong Canadian Employment data. Statistics Canada reported a substantial increase in job creation, with 90.4K new payrolls added in April, far surpassing expectations of 18K. This comes after a slight decrease of 2.2K jobs in March. Despite this positive trend, the Unemployment Rate held steady at 6.1%, contrary to predictions of a rise to 6.2%. However, Annual Hourly Wages saw a slight decline to 4.8% from 5.0% in March, which could impact consumer spending and inflation.

The Bank of Canada’s interest rate outlook may not be significantly affected by the strong job numbers due to the slower wage growth. The Canadian Dollar remains attractive, buoyed by rising Oil prices, as Canada is a major exporter of Oil to the US. On the other hand, the US Dollar’s strength is limited by cooling labor market conditions. The US Dollar Index has seen a slight rebound from key support at 105.00, as investors anticipate potential interest rate cuts by the Federal Reserve starting in September. However, there is uncertainty among policymakers, with Federal Reserve President Raphael Bostic mentioning the possibility of rate cuts but unsure about the timing and extent of any quantitative easing measures.

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