Forex
US Payrolls Trump Canada's Jobs Report This Friday
CANADA'S JULY JOBS REPORT TAKES A BACK SEAT TO US PAYROLLS
This Friday, Canada's July jobs report will be released at 8:30 a.m. ET, coinciding with the US nonfarm payrolls announcement.
According to ING, a Dutch banking group, USD/CAD typically reacts more strongly to US data than Canadian numbers, even when the latter are solid.
Francesco Pesole, an FX strategist at ING, explains that markets often adjust expectations for Canadian interest rates in line with those of the US, given their closely intertwined economies and bond markets.
This means that a significant US payrolls surprise can quickly alter the US-Canada rate gap, which drives USD/CAD, potentially overshadowing a 'good' Canadian print.