Yesterday the Canadian Dollar rallied as global risk sentiment was supported by positive trade data for China. Gains were extended as Chinese industrial production expanded by more than forecast, boosting commodities.
The Canadian Dollar Exchange Rate was in the region of 0.6233 against the British Pound as of 14:30 GMT
However, following the publication of Canadian employment data the ‘Loonie’ declined against US Dollar. The commodity driven currency was little changed against the Pound.
Although economists expected the Canadian economy to add 10,000 jobs in July it actually lost 39,400 positions.
The nation’s unemployment rate also climbed to 7.2 per cent, defying expectations for it to hold at 7.1 per cent.
The CAD/GBP exchange rate hit a low of 0.6212
The employment decline was led by a dip in government jobs and an increase in out of work youths.
So far this year Canada’s job gains have slowed. The monthly average gain of 16,000 is significantly less than the average 27,000 monthly increase recorded in the final six months of last year.
In response to the data currency analyst Adam Button commented: ‘A second month in a row of soft jobs data will get the Bank of Canada’s attention. It will give them a reason to reconsider their hawkish stance and could weigh on the Canada Dollar.’
Similarly, strategist Camilla Sutton observed: ‘Obviously a disappointing release on the Canadian jobs front. It highlights some of the fundamentals in the economy, that things are very moderate and there is a lack of confidence.’
Other figures showed that permanent employees’ average hourly wage was up 1.35 per cent in July year-on-year, considerably less than the 2 per cent advance recorded the previous month.
The public sector lost 74,000 jobs and employment among people aged 15-24 plummeted by 45,600.
Canadian data to watch out for next week includes Thursday’s existing home sales report.
Further signs of domestic economic weakness could see the ‘Loonie’ weaken further.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9668 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7235 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6233 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0549 <
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2054 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6049 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0292 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3761 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8255 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9478 >
(Correct as of 14:30 GMT)
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