Canadian Dollar Weakens Amid Disappointing Jobs Report
The Canadian dollar declined sharply on Friday after data showed a significant drop in domestic employment. The numbers contrasted with a stronger-than-expected U.S. jobs report, which boosted the U.S. dollar and put an end to the loonie's recent run of gains.
According to market readings, USD/CAD was around 1.3862, up about 0.5% on the day.
The Canadian economy lost 41,700 jobs in August, which fell short of expectations for an increase of about 15,000. The unemployment rate remained at 6.4%, while the employment rate slipped 0.1 percentage point to 60.8%.
Alex Tsepaev, Chief Strategy Officer of B2PRIME Group, commented on the data, stating that 'the sharp decline in labor market puts pressure on the Canadian dollar... This is especially true with employment falling and wage growth slowing.'