Canadian Dollar Edges Lower Despite Strong Jobs Data
The Canadian dollar declined 0.1% to 1.3920 against the U.S. dollar on Friday as the greenback reached a two-month high. While Canada added 87,800 jobs in May and the unemployment rate fell to 6.6%, the loonie still faced its largest weekly drop since March amid broader market shifts.
The Canada dollar fell 0.1% to 1.3920 against the United States dollar on Friday afternoon. The currency outperformed other G10 peers after domestic employment data significantly surpassed economist expectations. This resilience follows a technical recession that recently pushed the loonie to an eight-week low.
### Labor Market Strength Counters Economic Slump The Canadian economy added 87,800 jobs in May, significantly beating the 10,000-job gain predicted by economists. This surge lowered the unemployment rate to 6.6% from 6.9%. Sarah Ying, head of foreign exchange strategy at CIBC Capital Markets, said the strong report created a muted impact as it clashed with broader macro drivers.
