Canadian Dollar Surges as Strong Jobs Data Contrasts with Weaker US Payrolls
The Canadian dollar strengthened to an eight-week high against the US dollar after surprisingly strong jobs data was released on Friday. Employment had jumped by 75,100 positions in July, with both full-time and part-time sectors seeing gains.
The jobless rate fell for the third consecutive month, dipping from 6.5 per cent to 6.4 per cent, a level last seen in July 2024.
Economists are downplaying the risks that this report will mean tighter monetary policy from the Bank of Canada. Many expect the bank to remain on hold for the rest of the year.
Ariane Curtis, senior North America economist with Capital Economics, said 'The surge in employment in July following last week's strong preliminary second-quarter GDP growth estimate is further evidence that the economy is gaining momentum after a weak start to the year.'