Loonie Slides After Weak Canada Jobs Data
June 08 2018 - 04:41AM
RTTF2
The Canadian dollar drifted lower against its major counterparts
in the European session on Friday, as a data showed that the
nation's employment unexpectedly shrank in May.
Data from Statistics Canada showed that Canadian employment fell
by 7,500 jobs in May, defying expectations for an addition of
22,000 jobs.
This follows a decline of 1,100 jobs in April.
The unemployment rate held steady at 5.8 percent, matching
forecasts.
Crude oil prices fell amid conflicting reports on OPEC's
production outlook.
Reuters reports that Iran is upset with the U.S. request for
Saudi Arabia to raise oil production drastically to offset a drop
in Iranian exports. Tehran tells Reuters that OPEC will not comply
with such a request.
The loonie fell against its most major counterparts in the Asian
session, as Asian markets fell ahead of the G-7 summit starting in
Canada today.
The loonie fell back to 83.91 against the yen, heading to pierce
its early 8-day low of 83.86. The loonie is seen finding support
around the 82.00 level.
Data from the Cabinet Office showed that Japan's final gross
domestic product fell 0.2 percent on quarter in the first three
months of 2018.
That was unchanged from the May 16 preliminary reading, although
it defied expectations for an upward revision to -0.1 percent.
The loonie slipped to a 3-day low of 1.3037 against the
greenback, from a high of 1.2969 hit at 5:30 pm ET. Next key
support for the loonie is seen around the 1.32 level.
The loonie retreated to 1.5326 against the euro, from an early
high of 1.5254. On the downside, 1.54 is possibly seen as the next
support level for the loonie.
Data from Destatis showed that Germany's industrial production
decreased unexpectedly in April.
Industrial output dropped 1 percent month-on-month in April,
reversing a revised 1.7 percent rise in March. Output was forecast
to grow 0.3 percent.
Having advanced to a 4-day high of 0.9844 against the aussie at
7:00 am ET, the loonie reversed direction and eased back to 0.9890.
If the loonie falls further, 1.00 is likely seen as its next
support level.
Looking ahead, U.S. wholesale inventories for April are due
shortly.
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