Forex: Canadian unemployment rate down as expected, despite decline in job numbers

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The Canadian jobs report was released today indicating with disappointing numbers. The unemployment rate dropped as expected by 0.1% from the prior month to come out at 7.7%. However, the net employment change reported a negative 1,500 jobs, indicating a fall in jobs filled.

 

The Loonie has been strengthening against the US Dollar with the USDCAD pair reaching a new low today touching 0.9525, the first low in over 3 years. Much of the boost to the Canadian currency is given by the surging oil prices, and the current stalemate in Libya. Additionally, the looming US government shutdown has weakened the greenback substantially.

 

However, as soon as the news was released, the USCAD pair spiked almost 30 pips from 0.9540 to 0.9569. The Canadian Dollar soon regained strength and the pair continued its downtrend. The pair is currently trading at 0.9530 at time of writing.