Home Daily Commentaries CAD rallies against USD after jobs data

CAD rallies against USD after jobs data

Daily Currency Update

The Canadian dollar rallied against the US dollar after data showed that the Canadian economy added 336,600 jobs in February, crushing economist expectations of a 127,500 increase. This strong data point raised market expectations for a more aggressive rate hike from the Bank of Canada next month, which in turn has boosted demand for the Canadian dollar. USDCAD was down 0.52% trading at 1.26980 at the time of writing.

Key Movers

With hopes of an imminent ceasefire or truce in Ukraine subsiding, risk sentiment swiftly turned away from European currencies (besides CHF) and saw a wholesale flight to safe-haven currencies like the US dollar. USD also broadly strengthened Friday as rising bond yields kept pressure on its major peers like the euro and the pound. The US Dollar Index was up 0.23% sitting at 98.73 at the time of writing.

The pound retraced back below 1.31 on Friday even after a slew of upbeat economic data. Construction output, industrial production, and manufacturing production all beat economist expectations, however it did little to add steam to the pound amid the uncertain geopolitical climate. GBPUSD was sitting at 1.3082 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.3909 - 1.4084 ▼
  • GBP/CAD: 1.6614 - 1.6784 ▲
  • AUD/CAD: 0.9301 - 0.9405 ▼
  • USD/CAD: 1.2701 - 1.2792 ▼