USD/CAD - Jobless Rate Drops

Canadian Employment Net Change came in at +22,200 and the Unemployment rate dropped to 6.2% from 6.3%. When analysts break down the numbers, Canada saw Full-Time Employment drop -88,100 and Part-Time Employment gain 110.4. Job growth in part-time employment will not influence investors to double down on the Canadian economy. Canadian Capacity Utilization was in line with expectations of 85.0%. The U.S. dollar Index touched a low of 91.01 this week, a level not seen since January 2015. Demand for the mighty greenback has fallen in recent months as U.S. data metrics are not giving any reasons for the Federal Reserve to move on normalizing interest rates. U.S. fundamental today are very light, and the next significant event risk for the dollar will be Retail Sales figures next Friday. The greenback continues to trade on market sentiment and environmental concerns with Hurricane Harvey and the looming Irma.

The week's big event was yesterday’s rate decision and press conference from the European Central Bank where interest rates and monthly asset purchases were left unchanged. The euro rose throughout the afternoon as President Mario Draghi acknowledged the appreciation of the euro but did little to jaw-bone it lower. Some of the markets were expecting a talking down of the currency, however, it appears Draghi is tolerant of current levels which reflect the improving economic situation on the continent. Draghi lined up October's meeting as the date on which a tapering of quantitative easing will be announced starting the "bulk" of policy amendments which would be disclosed next month. Extra support has been given to the shared currency by the events in the Caribbean.

Today sees the start of a debate in Parliament on the U.K. government' EU (Withdrawal) Bill, with amendments expected to be tabled by opposition MPs to avert what some are seeing as a power grab by the ruling Tories. The one release of note today to affect the pound sterling will be this morning’s Manufacturing Production m/m figures from the U.K. with an uptick of 0.3% expected.

The Australian-U.S. dollar pairing pushed through 81 cents yesterday evening for the first time since summer 2015 as the dollar was sold off across the board. The Aussie is currently back down to $0.8090. The New Zealand has pared some of its losses sustained over recent weeks, rising to around 73 cents against the greenback in early trading. The kiwi will be susceptible to the news over the upcoming general election which sees the National and Labour party close to a dead heat in the polls.

Oil (WTI): $48.98 U.S. per barrel

Gold: $1,347.15 U.S. per ounce

Silver: $18.03 U.S. per ounce

Copper: $307.00 U.S. tonne

Dollar Index: 91.33


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