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Canada regains jobs lost since start of pandemic

Daily Currency Update

CAD - Canadian Dollar

The Canadian dollar climbed to its highest level against the US dollar in more than two months after jobs data showed that the economy returned to pre-pandemic employment levels. Canada added 157,100 jobs in September, according to Statistics Canada. USDCAD was down 0.52%, trading around 1.2487 at the time of writing.

Key Movers

After slumping lower last week, the pound has recouped some of its losses with GBPUSD trading around the 1.36 level. Fuel shortages and delivery disruption headlines are fading from investors’ memories and sterling has managed to regain its footing a little as a result. Demand for the pound was also supported by rising market expectations that the Bank of England may act sooner than anticipated to tackle high inflation in the form of a rate hike.

The US dollar was little moved after US nonfarm payroll data missed expectations. The US Dollar Index was down 0.11%, trading at 94.11 at the time of writing. Nonfarm payrolls increased by 194,000 jobs in September. Economists had expected 500,000 new jobs. Next week, we’re paying attention to inflation data with the latest US CPI number scheduled to be released on Wednesday. Annual inflation is currently above 5%, and as a result there is a growing consensus that the Fed should start to remove COVID-19 support policies that have propped up the economy for the past 18 months.

Expected Ranges

  • EUR/CAD: 1.4417 - 1.4518 ▼
  • GBP/CAD: 1.6986 - 1.7108 ▼
  • AUD/CAD: 0.9109 - 0.9186 ▼
  • USD/CAD: 1.2456 - 1.2563 ▼