Home Daily Commentaries CAD losing ground as jobs show loss

CAD losing ground as jobs show loss

Daily Currency Update

The Canadian dollar stands alone this morning as the only G10 currency that is down against the USD to start the day. This comes as the jobs data released this morning showed a surprise loss of 6000 jobs in July, contrary to economists’ consensus that an additional 20,000 jobs would be added. This may put pressure on the Bank of Canada to not hike rates next month as the economy appears to be cooling.

Key Movers

The euro is up slightly against the US dollar after the US Payrolls release, as well as a mildly better than expected retail sales release in the Euro zone. Sales in June dropped 1.4% versus an expected 1.7% reduction.

The US dollar is down against most G10 currencies this morning as the Non-Farm Payrolls data for July showed 187,000 jobs added to the US economy in July, lower than the 200,000 jobs analysts expected. Investors seem to be using this as a clue that the Fed may lay off further rate hikes as economic activity slows down.

Oil is up this morning after Saudi Arabia and Russia committed to further output cuts until the end of September. Russia has said it will cut production by 300,000 barrels a day while the Saudis are continuing their full 1,000,000 per day cut.

Expected Ranges

  • EUR/CAD: 1.4579 - 1.4725 ▲
  • GBP/CAD: 1.6902 - 1.7059 ▲
  • AUD/CAD: 0.8721 - 0.8808 ▲
  • USD/CAD: 1.3313 - 1.3381 ▲