Canadian Unemployment and Housing Data Boosts CAD

Surprisingly strong Canadian unemployment and housing data sent the Loonie soaring against its US counterpart in Friday’s trading.

Canadian Unemployment

In a report issued by Statistics Canada, official data showed on Friday that the rate of unemployment in Canada dropped unexpectedly last month. The Canadian unemployment rate declined to a seasonally adjusted rate of 7.1%, down from the 7.3% recorded in the preceding month. The surprise drop came after analysts had been expecting the Canadian unemployment rate to stay at 7.3% for March whose number was the highest for three years.

Canadian Employment Change

In a separate report issued by Statistics Canada, official data showed on Friday that Canadian employment change increased more-than-expected in March. Canadian employment change increased to a seasonally adjusted figure of 40.6K, a big leap from the -2.3K recorded in February. The unexpected jump came after analysts had been expecting Canadian employment change to increase 10.0K in March.

Canadian Housing Starts

In a report issued by the Canadian Mortgage and Housing Corporation, official data showed on Friday that Canadian housing starts declined less-than-expected last month. Canadian housing starts dropped to a seasonally adjusted annual figure of 204.3K, a small decline from the 219.1K recorded the preceding month whose figure was revised up from 212.6K. The unexpected decline came after analysts had been expecting Canadian housing starts to drop to around 190.0K for last month.

USD/CAD

As a result of the strong Canadian unemployment and housing data, the USD/CAD closed Friday down 1.29%, trading at $1.2979. The greenback was lower against most major currencies throughout Friday.  The US Dollar has found itself under pressure following the release of the minutes from the last Federal Reserve meeting.

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Daniel Simmons