CAD loses ground after release of US Jobs report
Monday 6 February, 2023
Daily Currency UpdateThe Canadian dollar remains down to start the day against most other major currencies. The US jobs numbers on Friday set the ball rolling for a dip in CAD vs USD. The combination of weaker equities and lower oil prices are weighing heavily on the CAD. Trade balances and jobs releases in Canada later this week could provide a cleaner picture of the Canadian economy.
Key MoversThe US Dollar is continuing its upward trend from Friday after a massive jobs beat put future Federal Reserve announcements back in the spotlight. The Non-Farm Payrolls showed gains of 517,000 jobs last month in the US, much higher than the expected 188,000 jobs. This is giving investors concern as it may mean the Federal Open Market Committee will have to rate hikes, more than anticipated, to keep prices down. Oil is down, trading under $75 a barrel and equities markets are all heading to lower opens in New York. The USD made headway in APAC trading as the news of the latest US jobs release set in. The results are helping the greenback against the AUD ahead of the next rate hike from the Royal Bank of Australia on Tuesday. Further helping the USD during Asian trading was the announcement of the future governor for the bank of Japan. The Euro took one of the biggest hits following the US job numbers on Friday, suffering a more that 2% drop. This has continued to start the week with England Central Bank President, Christine LaGarge, giving a speech during Eurozone trading that focused in on higher retail sales being largely related to YoY inflation.
- EUR/CAD: 1.4449 - 1.4482 ▼
- GBP/CAD: 1.6124 - 1.6182 ▼
- AUD/CAD: 0.9240 - 0.9308 ▼
- USD/CAD: 1.3394 - 1.3447 ▲