USDCAD - Canadian Dollar Surge
Solid ECN – The Canadian dollar recently hit a high of 1.36 USD, marking its strongest position since early April. This rise comes amid a widespread weakening of the U.S. dollar, driven by disappointing labor statistics from the U.S. The data showed only 175,000 new jobs created in April, well below the anticipated 243,000.
This underperformance, coupled with slower wage growth and a slight increase in unemployment, suggests that the Federal Reserve may cut rates as early as September.
Economic Indicators in Canada
In contrast, economic signals from Canada also hint at an upcoming rate adjustment, with several key indicators underscoring potential economic challenges. The Manufacturing PMI fell to 49.4, indicating continued contraction in factory activity for the twelfth consecutive month.
Furthermore, the Canadian economy's growth was a modest 0.2% in February, with expectations of stagnation in March, signaling a possible earlier rate cut by the Bank of Canada.