Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Canadian Dollar (CAD) Spikes After Jobs Report Smashes Expectations

Canadian Dollar (CAD) Spikes After Jobs Report Smashes Expectations

Justin McQueen,

CAD Price Analysis & News

  • Canadian Employment Change 259.2k vs Exp. 75k
  • Unemployment Rate Drops 1.2ppts to 8.2%
  • US Dollar Falls

BOTTOM LINE: A very strong employment report, adding to the slew of data that has surpassed the Bank of Canada’s forecasts. The headline rate rose 259.2k, topping expectations of 75k, while this was led by the part-time jobs increase, there was also good gains in full-time employment. Meanwhile the unemployment rate fell to 8.2%, significantly below expectations of 9.2%. Reminder that earlier in the week, the BoC had acknowledged that the rebound in the economy had been stronger than what they had expected, however, remained cautious given the uncertainty over the outlook. That said, with data as strong as today’s this will undoubtfully raise expectations that the BoC will be one step closer to looking at tapering QE.

MARKET REACTION: CAD Strengthens Across The Board

As to be expected from a stellar jobs report, the Canadian Dollar rose across the board with USD/CAD falling to fresh intra-day lows. A similar reaction had been observed in CAD crosses with CADJPY testing 87.00. In turn, while this is likely to underpin the Canadian Dollar, my preferred play would be against the Euro and AUD. The sentiment in the Euro remains soft with the German Health Agency stating that a third coronavirus wave could be taking shape. Italy have announced that a one month nationwide lockdown take place from mid-March, which comes at a time where the EU have faced headwinds pertaining to their vaccine rollout program. Alongside this, the ECB have announced that they will significantly increase the pace of PEPP purchases over the next quarter.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Justin McQueen
Trading Forex News: The Strategy
Get My Guide

DATA OVERVIEW: DailyFX Economic Calendar

Source: DailyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.