After the Bank of Canada (BoC) hiked interest rates by 75bps on Wednesday, the CAD bulls built up a head of steam before today’s labor release. The unemployment rate in the country has increased for the first time in 7 months. It appears that the Market’s excitement in the dollar sell-off was caused by either profit-taking or the recent overbought nature of the USD in the Fx market, where traders are thirsty for any anti-dollar sentiment to pounce on.
Today’s data has, however, put a halt to this market enthusiasm as unemployment hit levels last seen in February 2022, with employment in negative territory despite the activities of the government and estimates looking for a positive headline read.