- The Canadian labor market is back in a pre-pandemic state, regaining 3 million jobs.
- USD / CAD dips below 1.2500 due to the general weakness of the US dollar.
- A lousy report on US non-farm payrolls weakens the dollar.
The USD / CAD It is sinking during the American session, trading at 1.2477, down 0.58% at the time of writing. Earlier, when the headline for the US Non-Farm Payrolls report showed fewer jobs created than expected, the pair tumbled.
The market mood is in risk appetite mode, as witnessed by the European and US stock indices, with the majority in bearish numbers, with the exception of the FTSE100 and the Dow Jones, rising 0.25% and 0.04%, respectively. . Despite negative market sentiment, risk-sensitive currencies such as the loonie, the aussie and the kiwi are gaining ground against the dollar.
Additionally, West Texas Intermediate crude oil futures hit $ 80.00 a barrel for the first time since November 2014, boosting the Canadian oil-dependent currency and putting downward pressure on the USD / CAD pair.
Meanwhile, the US dollar index, which measures the dollar’s performance against its peers, is down 0.11%, closing at 94.11, while the yield on 10-year US Treasuries is rising three basis points. (bps), standing at 1.60%.
US Non-Farm Payroll Report Dwarfed by Canadian Employment Data
The US Bureau of Labor Statistics (BLS) released the Non-Farm Payrolls report for September. The reading of 194,000 was worse than the 500,000 estimated by most analysts, complicating a possible decision to reduce quantitative easing by the Federal Reserve to cut the stimulus.
At the same time, the Canadian Net Employment Change showed an increase of 157,100 jobs added to the economy, more than the 60,000 expected by economists. Additionally, with September’s reading now past, Canada has regained the 3 million jobs lost during the COVID-19 pandemic era. Furthermore, the participation rate improved to 65.5% and the unemployment rate remained unchanged below 7%.
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