Canadian Dollar slides as Canada sheds 41.7K jobs, US payrolls surge
USD/CAD accelerates sharply higher on Friday, trading around 1.3850 at the time of writing, up 0.39% on the day.
The Canadian Dollar experienced a sharp decline on Friday as Canada reported a loss of 41.7K jobs in August, down from 75.1K jobs added in July. This was below market expectations for a 15K increase. Meanwhile, the United States Nonfarm Payrolls (NFP) report showed a significant gain of 162K jobs in August, much higher than the initially forecasted 56K increase.
The revisions to previous months, including a higher June gain and a revised July gain, further bolstered the US employment statistics. The US Unemployment Rate remained steady at 4.1%, and the Labor Force Participation Rate increased to 61.6%, while Annual Average Hourly Earnings growth slowed to 3.1% in August from 3.2% in July.
The stronger US labor market and wage growth contrasted with the weaker Canadian figures, which weighed on the Canadian Dollar and contributed to the USD/CAD rally.
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Also reported by 1 other outlet
- US Dollar: Jobs strength lifts hike odds – ING fxstreet.com
