TheÂ USD/CAD currency pair today rallied higher after theÂ release ofÂ theÂ Canadian employment report forÂ May, which missed expectations byÂ aÂ huge margin. TheÂ currency pair later retraced most ofÂ its gains asÂ theÂ markets digested theÂ positive aspects ofÂ theÂ report, while trade concerns limited the currency pair’s upside.
TheÂ USD/CAD currency pair rallied toÂ aÂ daily high ofÂ 1.3039 from aÂ low ofÂ 1.2966 gaining over 70 points, but was onÂ aÂ downtrend atÂ theÂ time ofÂ writing.
TheÂ currency pair rallied higher following theÂ release ofÂ theÂ Canadian labor market report forÂ May byÂ Statistics Canada inÂ theÂ early American session. TheÂ employment report indicated that theÂ Canadian economy shed 7,500 jobs inÂ May versus theÂ expected addition ofÂ 23,500 new jobs, which is what triggered theÂ short-lived rally. However, theÂ country’s unemployment rate was not effected asÂ it came inÂ atÂ 5.8%, which was inÂ line with expectations. TheÂ average hourly earnings forÂ permanent employees beat expectations leading toÂ theÂ pair’s decline asÂ wages grew byÂ 3.9%, asÂ opposed toÂ theÂ expected 3.2% expansion.
TheÂ Canadian housing starts data also missed expectations byÂ coming inÂ atÂ 196,500 units versus theÂ expected 220,000 units. TheÂ industrial capacity utilization rate also missed expectations, but had aÂ muted impact onÂ theÂ pair.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ outcome ofÂ theÂ G-7 meeting that begins later today inÂ Quebec, Canada.
TheÂ USD/CAD currency pair was trading atÂ 1.2994 asÂ atÂ 13:56 GMT having dropped from aÂ high ofÂ 1.3039. TheÂ CAD/JPY currency pair was trading atÂ 84.25 having declined from aÂ high ofÂ 84.69.
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