USD/CAD drops to near 1.4300 after US-Canada employment data

Source Fxstreet
  • USD/CAD falls to near 1.4300 after the release of the employment data for both the US and Canada.
  • Surprisingly upbeat Canadian employment data has provided some support to the Canadian Dollar.
  • The US NFP data misses estimates and came in lower at 143K.

The USD/CAD pair falls to near 1.4300 in North American trading hours on Friday. The Loonie pair drops after the release of the employment data for January in both the United States (US) and Canada.

The Canadian labor market report came in surprisingly stronger than expected. The report showed that the economy added 76K workers in January, beating the estimate of 25K but remaining lower than the December reading of 91K. The Unemployment Rate decelerated to 6.6% from expectations of 6.8% and the previous release of 6.7%.

Signs of strong labor market data are expected to provide a big relief for the Canadian economy, which is facing the risk of economic slowdown. It appears that the impact of interest rate cuts yet taken by the Bank of Canada (BoC) is coming into effect. However, upbeat labor market data is unlikely to force traders to pare BoC dovish bets as risks of inflation undershooting the central bank’s target of 2%

Meanwhile, the US employment data showed that the labor demand remains weak. The Nonfarm Payrolls (NFP) report showed that employers hired added 143K job-seekers in January, significantly lower than estimates of 170K and the former release of 307K, upwardly revised from 256K. The Unemployment Rate decelerates to 4% from the estimates and the prior reading of 4.1%.

However, the Average Hourly Earnings data, a key measure of wage growth, surprisingly came in higher than projected. On year, the wage growth measure rose at a faster pace of 4.1%, compared to 3.9% in December. Month-on-month Average Hourly Earnings data rose at a faster pace of 0.5% against estimates and the former release of 0.3%.

Hot wage growth data is likely to boost market speculation that the Federal Reserve (Fed) will keep interest rates at their current levels for longer.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver spikes up to $36.50 with markets turning cautiousSilver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
Author  FXStreet
13 hours ago
Silver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
placeholder
EUR/GBP keeps the red above mid-0.8500s after Eurozone inflation dataThe EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
Author  FXStreet
13 hours ago
The EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
placeholder
Dollar Endures Worst Half in Decades: What's Next for 2025?The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
Author  Insights
13 hours ago
The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
placeholder
XRP, ETH Traders Getting Greedy? Funding Rates Highest Among Top CoinsData shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
Author  Bitcoinist
13 hours ago
Data shows XRP and Ethereum top the Funding Rate charts among the major cryptocurrencies, a sign of growing demand for long positions.
placeholder
Bitcoin Price Forecast: BTC slips below $107,000 even as exchange reserves hit 6-year low Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Author  FXStreet
13 hours ago
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Related Instrument
goTop
quote