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Canadian unemployment rate falls to 6.5% in June
Statistics Canada also reported net job gains of 18.2K and wages rising at a 3.7% annual pace, supporting a firmer Canadian dollar against the US dollar.
Statistics Canada said the unemployment rate fell to 6.5% in June, down from 6.6% in the prior month and below market expectations.
The agency reported net employment increased by 18.2K jobs, after a 87.8K gain in May. The participation rate held at 65%, while wages rose at a 3.7% annual pace, up from 3.2% in May.
Following the data, the Canadian dollar maintained a positive bias and USD/CAD moved into the mid-1.4100s, around fresh monthly lows.
Ahead of the broader labour market outlook, Markets were looking to the Labour Force Survey for more signals, and expectations called for the unemployment rate to remain around 6.6% and net employment to rise by about 10K.
In the background, the Bank of Canada is widely expected to keep policy unchanged at its July 15 meeting, with the central bank having held rates on the last five decisions since easing in October 2025. Expectations for additional tightening by year-end have been scaled down to nearly 15 basis points, from about 35 basis points a month earlier, according to FXStreet.