USD/CAD surges 0.78% to 1.4120 as a blowout US jobs report and weak Canadian employment data widen the monetary policy divergence between the Fed and the Bank of Canada.
October Nonfarm Payrolls of 165K far exceeded the 65K consensus, unemployment fell to 4.1%, and prior months were revised up by 84K. Markets lifted the odds of a December Fed rate hike to nearly 80%, driving the Dollar Index up 0.74% to around 102.35 and supporting the US Dollar broadly.
The US economy added 165K jobs in October, far above the expected 65K, and unemployment fell to 4.1%. This led markets to price in a nearly 80% chance of a Fed rate hike in December, lifting the Dollar Index 0.74% to about 102.35.
The USD/CAD pair climbed to 1.4120 as a robust US employment report contrasted with unexpected job losses in Canada. US Nonfarm Payrolls rose by 165K in October, far exceeding expectations, while Canada shed 4.7K jobs, pushing its unemployment rate to 6.7%. This divergence has increased the probability of a December Fed rate hike to nearly 80%, fueling broad US Dollar strength.
The US economy added 165K jobs in October, far above the expected 65K, and unemployment fell to 4.1%. This led markets to price in a nearly 80% chance of a Fed rate hike in December, lifting the Dollar Index 0.74% to about 102.35.
Canada's economy unexpectedly shed 4.7K jobs, missing expectations for a 13.6K gain, while the unemployment rate rose to 6.7% from 6.5%.