Canadian jobs report shows a fall in July
The Canadian jobs report has shown a loss of 24.2k jobs in July, with this evenly split between full and part-time jobs. As such, the CAD takes a hit right across the board, after a morning of steady buying which saw the USD rate touching in 1.3200 or so. We are now back to 1.3265-75 resistance levels.
The unemployment rate has also risen from 5.5% to 5.7%, with a lower participation rate adding to the weak number. While wages are holding up with a higher than expected earnings rate, but the market is going with the headline number for now.
Technically, the upside may be a struggle with the resistance area we have mentioned, though the lows of the day did run into strong support well ahead of the lows seen earlier in the week.
The cross to watch here is GBP/CAD perhaps with the pair making new lows not seen since the summer of 2017.