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07/06/24
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CAD Slightly Higher Ahead Of US, Canadian Job Data
The Canadian dollar’s week has been relatively quiet and on Friday has inched up. USD/CAD traded at about 1.3683, up 0.10% in the European session.
There may be stronger movement by the pair in the North American session when both Canada and the US will release their employment reports for May.
In April, job growth in Canada showed a surprising spurt as the economy created 90,400 additional jobs. That was the highest level in 15 months and was much higher than the market consensus of 18K. The numbers were especially encouraging as employment gains were seen across the economy.
The report for May will likely show a sharp decline and the market estimate is at 22,500. The unemployment rate is expected to inch up to 6.2%, versus April’s 6.1%.
The Bank of Canada will be watching the job numbers closely, as it looks ahead to the July 24 meeting. The BoC lowered rates from 5.0% to 4.75% earlier this week. This was the first rate cut in more than 4 years and comes as inflation has dropped to 2.7%, which is within the BoC’s “comfort level” of between 1% and 3%.
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