1:32 PM · 7 July 2023

BREAKING: CAD gains after strong jobs report

While markets' attention was mostly focused on US jobs data for June, there was also release of the Canadian jobs data at the same time (1:30 pm BST). Data turned out to be a positive surprise as employment increased much more than expected. Total employment change for June came in at +60k, driven by an almost-110k increase in full-time jobs. On the other hand, unemployment rate jumped from 5.2 to 5.4% while market hoped for an increase to 5.3%

Canada, jobs market data for June

  • Total employment change: +60k vs +21k expected (-17.3k previously)
  • Full-time employment: +109.6k vs -32.7k previously
  • Part-time employment: -49.8k vs +15.5k previously
  • Unemployment rate: 5.4% vs 5.3% expected (5.2% previously)

CAD jumped following the release as strong jobs growth makes a 25 bp rate hike from Bank of Canada on Wednesday next week even more likely. Markets were already pricing in an around-60% of such a move prior to jobs data release.

CADJPY recovered part of earlier declines following strong jobs data from Canada. The pair is trying to stay above the 107.00 support zone. Source: xStation5

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