Canadian dollar down on risk aversion but jobs remain strong
Friday 2 December, 2022
Daily Currency UpdateThe Canadian dollar is down this morning following the release of jobs data in both Canada and the US. Both countries saw more jobs added to their economies than expected in November. In the Canadian case, over 10,000 jobs were added, compared the consensus of 5000. All those jobs were full time positions as there were over 50,000 full time positions added with a loss of 40,000 part time jobs. The CAD is looking to get some help over the weekend with the OPEC+ meeting scheduled for Sunday. Rumours are creeping into the market that the oil cartel may cut production by an additional 50,000 barrels a day more than expected to prop up oil prices.
Key MoversThe US dollar is retracing some of the losses it saw over the last 2 trading sessions on the back of stronger than expected jobs numbers this morning. The non-farm payrolls data for November showed 263,000 jobs added against a consensus 200,000. The official unemployment rate remained at 3.7%. The stronger jobs market is complicating the outlook on future Fed rate hikes. As a result, North American indices are pointing towards a lower open with Dow Futures already down over 400 points.
The euro made gains in the overnight markets as trade numbers in Germany outperformed expectations. The core trade numbers in Europe’s biggest economy were €6.9B to the positive, better than the €5.2 economists had predicted. Outside majors the Chinese yuan was the day’s big winner as further signs China is loosening Covid restrictions helped fuel an extension in the recent upward recovery.
- EUR/CAD: 1.4077 - 1.4161 ▲
- GBP/CAD: 1.6410 - 1.6512 ▲
- AUD/CAD: 0.9107 - 0.9178 ▲
- USD/CAD: 1.3410 - 1.3501 ▲