Following the release of the Canadian labor market data, the USD/CAD exchange rate jumps to over 1.3920.
The unemployment rate in Canada increased to 6.9% at a quicker rate than anticipated.
Over the weekend, US-China trade negotiations are anticipated by investors.
In Friday's North American session, the USD/CAD pair rises to about 1.3920 following the release of the Canadian job market statistics for April. The report revealed that the unemployment rate, which was the highest since October 2021, increased more quickly to 6.9% from estimates of 6.8% and the March figure of 6.7%.
Despite a pullback in the US dollar (USD), a higher unemployment rate has caused the Loonie pair to rise, indicating a major weakness in the Canadian dollar (CAD).
7.4K new workers were added to the Canadian economy, more than the 2.5K predicted. There were 32.6K fewer workers in the labor force in March. In the meantime, the Average Hourly Wage, a crucial indicator of wage growth, increased consistently by 3.5% year.
Market expectations that the Bank of Canada (BoC) must resume its monetary-expansion cycle, which it suspended during last month's policy meeting, are anticipated to increase if the unemployment rate rises.
As investors become more cautious ahead of the US-China trade talks, the US dollar significantly corrects. In an effort to defuse the trade war, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer have confirmed that they will meet with their Chinese colleagues in Switzerland on Saturday.
At the time of writing, the US Dollar Index (DXY), which measures the value of the US dollar relative to six major currencies, has dropped from its nearly month-high of 100.85 earlier in the day to about 100.30.
In a post on Truth.Social ahead of the US-China meeting, President Donald Trump hinted that tariffs on Beijing would be lowered to 80%. "I think an 80% tariff on China is appropriate! Scott Bessent will decide it," Trump stated.
The unemployment rate in Canada increased to 6.9% at a quicker rate than anticipated.
Over the weekend, US-China trade negotiations are anticipated by investors.
In Friday's North American session, the USD/CAD pair rises to about 1.3920 following the release of the Canadian job market statistics for April. The report revealed that the unemployment rate, which was the highest since October 2021, increased more quickly to 6.9% from estimates of 6.8% and the March figure of 6.7%.
Despite a pullback in the US dollar (USD), a higher unemployment rate has caused the Loonie pair to rise, indicating a major weakness in the Canadian dollar (CAD).
7.4K new workers were added to the Canadian economy, more than the 2.5K predicted. There were 32.6K fewer workers in the labor force in March. In the meantime, the Average Hourly Wage, a crucial indicator of wage growth, increased consistently by 3.5% year.
Market expectations that the Bank of Canada (BoC) must resume its monetary-expansion cycle, which it suspended during last month's policy meeting, are anticipated to increase if the unemployment rate rises.
As investors become more cautious ahead of the US-China trade talks, the US dollar significantly corrects. In an effort to defuse the trade war, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer have confirmed that they will meet with their Chinese colleagues in Switzerland on Saturday.
At the time of writing, the US Dollar Index (DXY), which measures the value of the US dollar relative to six major currencies, has dropped from its nearly month-high of 100.85 earlier in the day to about 100.30.
In a post on Truth.Social ahead of the US-China meeting, President Donald Trump hinted that tariffs on Beijing would be lowered to 80%. "I think an 80% tariff on China is appropriate! Scott Bessent will decide it," Trump stated.
