Analysis and Recommendations:
The USD/CAD is exchanging at 1.0207 giving up 56 points after Canadian jobs showed a huge jump in employment change, while the US jobs market beat expectations by a slight amount. The Canadian dollar was higher Friday amid a strong jobs report for May.
The loonie was up 0.63 of a cent to 98.1 cents US as Statistics Canada reported that the economy created 95,000 jobs in May, most of them full-time positions. Also, the unemployment rate moved down to 7.1 per cent from 7.2 per cent. Economists had expected job creation somewhere in the neighborhood of 15,000 last month. Meanwhile, traders also took in a stronger-than expected read on American employment last month.The U.S. Labor Department said that 175,000 jobs were created during May.
The expectation had been for the economy to have cranked out about 165,000 jobs during May. But analysts had worried that modest expectation for U.S. employment was doubtful after disappointing reads on private sector hiring from payroll firm ADP and the employment component of the Institute for Supply Management’s index on the U.S. non-manufacturing sector.
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