The Canadian dollar exchange rate benefitted to gain further against the US dollar this week. The gain was fuelled by positive new jobs data release which saw the Canadian economy create 45,300 more jobs last month. The achievement comfortably surpassed the forecast of 11,400
Encouragingly the largest recruitment growth was seen in full time sector which added 248,000 new job roles to the economy. A rise of 1.7% compared to 2016.
The part time employment sector also benefitted seeing an increase of 103,000 roles. An increase of 3% compared to last year.
Whilst the news was viewed as extremely positive by markets, one area which caused concern in Canada is the stagnant youth employment with no increases for youth employment in June.
Canadian Unemployment Continuing To Decrease
A better than expected unemployment level followed the encouraging data. Figures showed that unemployment was easing with the figure of 6.5% surpassing the expected level of 6.6% and capping of a very good day for the Canadian dollar exchange rate.
Potential Rate Hike To Offer Canadian Dollar Exchange Rate further boost?
With a raft of data surpassing expectations over the last few months for the Canadian economy Fridays job data would seemingly be the cherry on the cake, especially with a potential interest rate on the horizon next week. Experts are suggesting that the probability of a rate hike sits at around 93% therefore we may see the Canadian dollar exchange rate strengthen further as markets price this in; if it hasnâ€™t been already.
The US unemployment data also wonâ€™t have hurt the CAD â€˜s chances especially as the FED have always indicated that the US workforce related data will lead sentiment on rate hikes. A third-rate hike currently seems at very least likely to be delayed.
Canadian Dollar Exchange Rate Closes In On A 10-Month High Against The USD
As mentioned, the Canadian Dollar exchange rate benefited enormously from the latest jobs results. CAD gaining dramatically against a raft of currencies including EUR, GBP and notably the USD.
The CAD/USD opened on Monday (UK Markets) at 0.7702 and gained incrementally early in the week, both due to lack of confidence in the US Dollar but also positive Canadian data numbers. However, the real boost to the Candian Dollar exchange rate followed the positive workforce data. Seeing the CAD/USD to rise from 0.7707 to 0.7759 in just an hour of trading. Before closing at 0.7766.