Canadian dollar hits 11-week high on 43-year-low unemployment figure

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Canadian dollar hits 11-week high on 43-year-low unemployment figure

On Friday, the 7th of June 2019, the Canadian dollar had been anchoring just a notch shy of its three-month peak against its American counterpart, breaching a 11-week high earlier in the session, while domestic data revealed on Friday (June 7th) showed a record low unemployment rate that added to investors’ optimism alongside a weaker American dollar over poor non-farm payroll on May.

According to official data revealed on Friday (June 7th), Canadian economy had added a higher-than-anticipated 27,700 jobs in May after filling over 1,06,500 positions in April, meanwhile the unemployment rate of Canada had dropped to a record low of 5.4 percent the lowest since comparable data available in 1976.

Aside from that, on a year-on-year basis, the employment rate of Canada grew by 2.4 percent or 4,53,000 new jobs, mirroring gains in both full time and part-time job markets, while full-time labor markets added 2,99,000 new jobs and part-time jobs were surged by 1,54,000 from a year earlier.

Following the reveal of a robust job data matched with a weakening American dollar, the Canadian dollar had posted a gain of 0.7 percent to 1.3269 on Friday’s (June 7th) market closure, while the Canadian currency hit its strongest level since March 20th.

For the week ended on June 7th, the loonie had added a weekly gain of 1.8 percent, its best performance since January 2019, while a moderation of sharping heading off crude oil price had also bolstered the oil-dependent currency.

Expressing an out-and-out optimism over the second half of the year, a director at Klarity FX in San Francisco, Amo Sahota said, “I think the fundamental story for Canada looks ok. Bank of Canada Governor Stephen Poloz "keeps telling us don't worry guys, the second half of the year we are going to be better ... I think this week's data will make him look good, I think it justifies his call at the moment”.