Canadian Dollar Rebounds After Disappointing 24K Lost Jobs

Canada’s economy shed a net 24,200 jobs in July, driven by a decline in wholesale and retail trade, official data showed on Friday, as Canada’s job market remained in a holding pattern for the third consecutive month.

usdcad Canadian dollar graph, August 9, 2019

Statistics Canada said the unemployment rate edged up to 5.7% from 5.5% in June as more people looked for work after hitting record lows earlier this year. Analysts in a Reuters poll had predicted a gain of 12,500 jobs and an unemployment rate of 5.5%.

“Clearly it’s on the disappointing side of expectations,” said BMO Chief Economist Doug Porter. “Of course, you can never read too much into any one month but this is the third setback in employment in the past five months.”

The Canadian dollar weakened to $1.3268, or 75.37 cents U.S., following the decline in jobs.

July saw the loss of 11,600 full-time jobs and 12,600 part-time positions. Employment declined for youth aged 15 to 24 and for women in the core working ages of 25 to 54 but increased for core working age men.

Via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza