BREAKING: Canada’s employment above estimates, CAD gains

The labour market report from Canada for June has just been released. Following 2 months of worse-than-expected figures and employment declines, markets anticipated that June would be a much better month in terms of Canadian labour market recovery. In fact, the data seems optimistic this time as the headline employment number topped the consensus estimate.

• Employment change: 230.7k (vs exp. 170k)

• Unemployment rate: 7.8% (vs exp. 7.8%)

• Participation rate: 65.2% (previously: 64.6%)

USDCAD fell below important support zone near 1.25150 ahead of employment report release, suggesting that traders were optimistic about the data. Shortly after the publication the CAD is strengthening even more against the USD, falling below the 38.2% Fibonacci retracement of the recent upward impulse. Source: xStation5