Canadian July employment data
- Prior was -2.2K
- Unemployment rate 5.7% vs 5.5% expected
- Participation rate 65.6% vs 65.7% expected
- Full time change -11.6K vs +24.1K prior
- Part time change -12.6K vs -26.2K prior
USD/CAD jumped to 1.3260 on the headlines from 1.3210. This comes at a sensitive time with many central banks shifting to a more dovish stance or cutting rates. Meanwhile, the Canadian economy has outperformed all year. Even with this drop, it's the best start to the year for jobs growth since 2010.
So the temptation is to say 'it's just one month' but with the way central bankers have been hitting the panic button, it certainly could be meaningful. The next BOC decision is Sept 4. A cut is probably still out of the question but they could tee-up something for October or beyond.
