BIG MISS ON CANADIAN EMPLOYMENT HAS MARKETS FAVORING USD
After the Bank of Canada (BoC) hiked interest rates by 75bps on Wednesday, CAD bulls built up a head of steam prior to today’s labor release. Markets overexuberance in the dollar sell-off may have been propelled by profit-taking or simply the overbought nature of the greenback of recent where traders looked for any anti-dollar sentiment to pounce on. Today’s data (see economic calendar below) has put a halt to this market enthusiasm as unemployment hit levels last seen in February 2022 while employment remained in negative territory despite estimates looking for a positive headline read.
