The Loonie has dropped below the 1.2500 mark following some impressive job numbers from Canada. The buying interest seen in the WTI crude oil prices is another reason why the Loonie is outperforming the US Dollar at the moment.
Canada Reveals Strong Employment Figures
The Canadian economy saw an increase of 230,700 jobs in June, which is a massive increase compared to the 68,000 jobs losses reported in May. Analysts had expected the job increase in June to be around +195,000. However, the latest data published by Statistics Canada showed that the economy had thrived last month.
Furthermore, the unemployment rate in Canada declined to 7.8% in June from 8.2% in May. However, it fell short of the 7.7% estimated by analysts.
[fx-article-ad]CAD Gets Boost From Job Data and WTI Prices
The Loonie got big help from the Canadian employment data. The USD/CAD was rallying during the Asian trading session today, reaching an intraday high above 1.2550. The dollar couldnt take advantage of the rally and began losing some of its earlier gains.
Despite the upside attempts during the Asian session, the USD/CAD remained in a narrow range for most of the day. The renewed buying interested recorded by WTI crude oil amidst a return or risk appetite helped the Loonie limit the losses against the Greenback. Hence, limiting further advances in the USS/CAD pair.
The Canadian job report was the major catalyst that dragged the USD/CAD pair down after the gains recorded earlier today. Despite that, the risk recovery lifted the US Treasury yields, and this has helped the US Dollar limit the downside movement. Currently, the USD/CAD pair is trading at 1.2496.
The USD/CAD pair could remain around the 1.2500 for the next few hours, with no other major event slated for the rest of the day. The Loonie had recorded losses against the Greenback for most of the week, but todays performance could limit the losses.