Canada’s employment data shows an upswing while the U.S. data shows a slowdown. Canada’s report reaffirms the labor market as the main driver of Canada’s expansion, and adds to a recent run of data showing clear signs the country is on the path back to growth after stalling at the end of last year. The currency jumped on the report, which is seen to give the central bank more ammunition to resist pressure to lower borrowing costs. The U.S. on the other hand is showing signs of a slowing economy and markets are now wondering when the Federal Reserve will cut rates not if. This leaves the Bank of Canada in a quandary, there is no real reason to cut rates, if it doesn’t then the CAD will rally significantly, and possibly be accused of currency manipulation by a certain president and causing further tariff problems, a no win situation.
Currently Close Range
USDCAD 1.3273 1.3362 1.3264-1.3368
EURCAD 1.5042 1.5086 1.5028-1.5075
GBPCAD 1.6915 1.6964 1.6917-1.7007
Prior Actual
CA: Employment May 106.5K 27.7K
Unemployment Rate 5.7% 5.4%
US: Employment Non-Farm Payrolls May 224K 75K
Unemployment Rate 3.6% 3.6%
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