Canadian data came out today (7/6 US session 8:30AM EDT) all beating expectations:
2) Employment change for June came in at 7.3K vs. forecast of 5.1K similar to the 7.7K in May.
3) Unemployment rate in June surprised with a drop to 7.2% from 7.3%.
Still, the CAD lost ground to the USD after the poor NFP brought about risk-aversion which is positive for the USD and negative for commodity currencies like the CAD.
4) There was poor data however. June’s Ivey PMI reading fell below the 50 level to 49, suggesting contraction in business activity. This was a huge drop from May’s 60.5, and missed forecast of 55.4.
Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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