The Canadian dollar has shown resilience, strengthening against the US dollar due to positive labour market data. While mixed jobs data introduced some uncertainty, the overall picture suggests a stronger Canadian economy, reducing expectations for aggressive monetary easing by the Bank of Canada. This, coupled with a pause in US dollar strength, has provided support for the Canadian dollar.
- The Canadian dollar strengthened toward 1.365 per US dollar.
- The Canadian unemployment rate fell to 6.5%, the lowest since September 2024.
- Full time employment is up 0.9% year-on-year.
- Wage growth remained firm at 3.3%.
- The Bank of Canada is expected to follow a slower and more cautious easing path.
- USD/CAD posts modest gains near 1.3650 amid mixed Canadian jobs data.
The current economic landscape suggests a potentially positive outlook for the Canadian dollar. Strong labour market indicators reduce pressure on the central bank to aggressively lower interest rates, which can support the currency’s value. While mixed employment data introduces some volatility, the overall trend points towards a stable and potentially strengthening Canadian dollar.