CANADIAN DOLLAR PRICE OUTLOOK: USD/CAD, CAD/JPY REACT TO JOBS DATA
- The Canadian Dollar[1] is trading stronger on the session following employment data
- USD/CAD[2] extends its slide 25-pips as CAD/JPY[3] rises 18-pips in immediate response
- Canada’s unemployment rate dropped to 7.8% from 8.2% as 231K jobs were added
The Canadian Dollar is staging a nice rebound during early Friday trade with the Loonie stronger against most FX peers. While firmer bond yields and crude oil prices[4] are likely helping bid up CAD price action, decent employment data just released out of Canada stands to help keep the Canadian Dollar trading on its front foot.
USD[5]/CAD dipped lower while CAD/JPY[6] popped higher in immediate reaction to the better-than-expected reading for the headlines jobs figure. The Canadian economy added 230.7K jobs in June, which compares to market forecast anticipating 195K and the prior reading of -68K. Looking ‘under the hood’ of the employment report, however, shows that full time employment actually decreased by -33.2K jobs. The unemployment rate declined to 7.8% from 8.2%, but it was expected to drop to 7.7%.
USD/CAD PRICE CHART: 15-MINUTE TIME FRAME (08 JULY TO 09 JULY 2021)
USD/CAD price action, on balance, does not seem too fazed by mixed details in the employment report. The major currency pair[7] trades 57-pips lower on the session at the time of writing with most of the decline occurring in the run-up to the jobs data release. Again, it seems like firmer bond yields and oil[8] prices are larger drivers of Loonie strength at the moment.
CAD/JPY PRICE CHART: 15-MINUTE TIME FRAME (08 JULY TO 09 JULY 2021)
CAD/JPY reacted similarly to the mixed yet good
