Canadian gains on stronger oil and jobs release
Friday 4 November, 2022
Daily Currency UpdateThe Canadian dollar has whipsawed back to rates seen earlier in the week after the negative trading session of the last 2 days. Better than expected jobs in the US of 261,000 was followed by a giant beat in Canadian jobs data. The Canadian economy added 110,000 jobs in October versus an expected 10,000. The most positive piece in this was that the economy added 119,000 full time positions. These typically pay better, have things like benefits unlike part time positions. Also lending a hand to the CAD is movement in oil, crossing over the $90 barrier to $91+ form the $87 level yesterday.
Key MoversThe USD is down generally this morning after Non-Farm Payrolls for last month came in stronger than expected. This morning’s release showed 261,000 new jobs added to the economy last month. This news has Futures markets and commodities trading higher today, with Dow futures trading up close to 400 points. What is left to be seen though is how long this will last. This more resilient job market will help to provide cover for the FOMC to continue its pace of rate hikes at the next meeting. Next week’s CPI data should also provide some indication of what the next couple of rate hikes could look like.
The Euro had been under pressure in overnight trading with negative data out of Germany. Both the Factory Orders (-7%) and the Services PMI data for September were misses. The Euro did come back to life though with the release jobs data. Positive outlooks for North American Markets have carried over to European markets now which are poised for a positive close to the week.
- EUR/CAD: 1.3294 - 1.3453 ▼
- GBP/CAD: 1.5200 - 1.5424 ▼
- AUD/CAD: 0.8639 - 0.8722 ▲
- USD/CAD: 1.3525 - 1.3797 ▼