The loonie rose after the release of the August jobs report. The Canadian economy added 81,100 jobs, beating the expectations of a 23,800 gain. Full time and part time employment saw gains, but it was the part time sector where most of the gains came from.
The USD/CAD is headed towards the 1.32 price level after the NFP underperformed with a 130,000 job gains in the United States in August. The forecast called for a range above 150,000. Employment continues to be solid, but the US dollar is sensitive to data misses as the Fed is getting ready to cut rates this month. This does not help their case of patience and the market will focus on next week’s inflation and retail sales data.
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