US Dollar Surges Against CAD on Strong Payrolls and Weak Canada Jobs
The US Dollar/Cad surged towards 1.3850 on Friday after strong US payrolls and weak Canadian jobs data boosted the dollar. The pair gained nearly 80 pips, rising approximately 0.39% in a single day.
The US Nonfarm Payrolls (NFP) report showed an increase of 162,000 jobs in August, far exceeding market expectations for a 56,000 rise. This reinforced evidence that employment conditions remain more resilient than previously estimated. Previous payroll figures were also revised higher: June job growth was upgraded to 31,000 from 20,000, and July's initially reported decline of 23,000 was revised to an increase of 21,000.
In contrast, Canada delivered a weaker employment picture. The Canadian economy shed 41,700 jobs in August after adding 75,100 positions in July. This sharply missed expectations for a 15,000 increase. The unemployment rate remained at 6.4%, as anticipated.