CAD loses ground on weak jobs data
Daily Currency Update
The Canadian dollar continued to lose ground to the greenback to start the year with this morning’s jobs release being weaker than expected. The Canadian economy had been expected to add 15,000 positions in December but only managed to add a net of 100. All the additions came in the form of part time positions which were up 23,600. Oil prices headed to make gains as West Texas Intermediate (WTI) is up over $73 a barrel to start the day. Prices continued to be reactive to geopolitical issues which have caused companies to cancel deliveries or re-route shipping to longer, more expensive transits.Key Movers
The US Dollar Index (DXY) was up heading into today’s session as the US economy added more jobs than expected in December. The Non-Farm Payrolls release this morning showed an additional 216,000 positions being added to the economy last month against a consensus expectation of 150,000. This has investors decreasing the likelihood of seeing rate cuts from the Fed in the short term. This change has markets seeing equities drop while US treasuries made gains.Eurozone inflation came in at 3.4% this morning, which was in line with expectations. The market took this inflation data, paired with weaker than expected retail sales in Germany (-2.4% versus the expected 0.5%) as a negative for the Euro. The currency lost ground against the USD in early trading this morning.
Expected Ranges
- EUR/CAD: 1.4573 - 1.4640 ▼
- GBP/CAD: 1.6898 - 1.6970 ▼
- AUD/CAD: 0.8898 - 0.8966 ▼
- USD/CAD: 1.3347 - 1.3445 ▲