USD/CAD Dives on Divergent Labour Market Data

The USD/CAD pair opened the new week at its lowest level since early June, extending a downward trend that's been building over recent months. The drop comes on the heels of last Friday's release of labour market data for July, which saw US non-farm payrolls fall by 23,000 against expectations of an 80,000 increase.

The US unemployment rate did see a slight improvement, falling to 4.1%, but average hourly earnings were also revised down in May and June by a combined 103,000.

Nick Bubaouras of K2 Asset Management weighed in on the weaker-than-expected US jobs report, saying 'it could be a positive shift' away from forward guidance for interest rates.