⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Lower CAD to USD After Soft Canadian Jobs Report

Yesterday we saw weakness in CAD to USD rate, after a strong US NFP employment report and weak Canadian jobs figures, which sent USD/CAD 50 pips higher. The USD couldn’t hold the gaind against most other major currencies after the initial 70 pip jump, but it held half of the gains against the CAD, which comes as a result of disappointing employment numbers from Canada.

USD/CAD Chart Daily – The Trend Remains Bullish Even With the USD Retrat

USD/CAD was trading around 1.3550 before the data release, but it jumped to 1.3647 following the release. This represents a significant change in the exchange rate, indicating a weakening of the Canadian dollar relative to the US dollar and the market reaction suggests that there is now increased speculation about the Bank of Canada potentially lowering interest rates before the US Federal Reserve.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

Prior to the data release, the odds of a rate cut by the Bank of Canada on June 5 were at 68%. However, following the data release, these odds have increased to 75%, indicating that the Bank of Canada will likely take action to lower rates in order to stimulate the economy in the June meeting.

Canadian March 2024 Employment Report

  • March employment decreased by 2.2 thousand jobs, compared to an expected increase of 25 thousand jobs.
  • In February, employment had increased by 40.7 thousand jobs.
  • The unemployment rate rose to 6.1%, higher than the estimated 5.9% and up from the prior rate of 5.8%.
  • Full-time employment saw a small decrease of 0.7 thousand jobs, compared to a significant increase of 70.6 thousand jobs in the previous month.
  • Part-time employment also declined, with a decrease of 1.6 thousand jobs, following a decrease of 29.9 thousand jobs in February.
  • Average hourly wages for permanent employees increased by 5.1%, up from 4.9% in the previous month (the prior figure was revised to 5.0%).
  • The participation rate remained unchanged at 65.3%.

Overall, the March employment data for Canada fell short of expectations, with a decline in employment and an increase in the unemployment rate.

USD/CAD Live Chart

USD/CAD
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles