Forex
Home›Forex›Major Pairs›Canadian dollar firms as jobs data cools dovish rate b…
Canadian dollar firms as jobs data cools dovish rate bets
June employment rose to 18.2k versus 10.0k expected, while unemployment fell to 6.5%, keeping markets looking for Bank of Canada rates to stay unchanged through year end.
Currency markets ended the week on a subdued note as developments tied to Canada, Japan and the Middle East reinforced existing narratives rather than triggering a major repricing, according to Action Forex.
The Canadian dollar received modest early-session support after June employment data came in stronger than expected. Employment increased by 18.2k compared with a 10.0k forecast, and the unemployment rate fell to 6.5% from 6.6%, alongside a steady participation rate and firmer wage growth.
The report poses a challenge to a more dovish Bank of Canada outlook, Action Forex said, by highlighting ongoing resilience in the domestic economy despite uncertainty around Canada’s evolving trade relationship with the United States. Still, markets saw the data as not strong enough to justify renewed tightening, with expectations that the BoC will keep rates unchanged for the remainder of the year.
In Japan, the yen held onto earlier gains linked to a pension fund initiative after Finance Minister Katayama suggested encouraging pension funds to invest more in domestic financial assets. Action Forex noted the idea is not yet formal policy, would likely take years to implement, and depends on decisions by institutional investors such as GPIF. Elsewhere, easing US-Iran tensions kept Brent crude below $80, supporting FX trading consolidation.
Latest closeWTI crude $71.84 ▼2.3%|Brent $75.98 ▼2.6%