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Jobs report drives gains

CAD - Canadian Dollar

The Canadian dollar strengthened in value against most major currencies this morning after a positive jobs report was released.

Since yesterday, the loonie gained over 0.10% against the pound and a quarter percent against the euro. It lost 0.54% against the US dollar because the US also released positive jobs numbers.

According to Statistics Canada, employers increased their payrolls by 419,000. This beat forecasted expectations, which is good for the Canadian dollar.

Key Movers

Since yesterday, the dollar gained over half a percent against the euro, nearly three-quarters of a percent against the pound and 0.65% against the Canadian dollar. According to the US Bureau of Labor Statistics, Non-Farm Payrolls increased by 1.8 million in July and the unemployment rate fell to 10.2 percent. Both points beat forecasted expectations, which is good for the local currency.

Yesterday the Bank of England kept rates unchanged at 0.1 percent and its asset purchase program at £745 billion. Looking at these two figures surely this is dovish news for the pound, however diving down deeper into the Bank of England statement they are in fact more optimistic about the UK economy than many other forecasters and indeed their own projections from May. According to the central bank the UK is expected to shrink by 9.5% this year before bouncing back 9% next year. All in all, this improved outlook put the wind in the sails for the pound although it didn't quite break those March 2020 highs.

Expected Ranges

USD/CAD: 1.327 - 1.339 ▼

GBP/CAD: 1.742 - 1.752 ▲

EUR/CAD: 1.573 - 1.582 ▲

CAD/AUD: 1.037 - 1.042 ▲