The Canadian economy added nearly one million jobs in June as businesses began to hire as part of the economic restart. The number of jobs added was better than the estimated 700k and the employment rate fell to 12%. The Canadian dollar strengthened by a very modest 0.1% in response to the news. Again, as we have pointed out, the Canadian dollar is mostly moving in line with global risk sentiment these days and is not particularly sensitive to particular outcomes specific to Canada. The market correctly recognizes that, for now, the exact number of jobs or the deficit in Canada will have less impact on the USD/CAD exchange rate than the perceived risk to overall global recovery. Prior to the jobs number the loonie had weakened by about 0.7% giving up all of its gains from yesterday. We are now again trading within the same 1.355 to 1.565 range we have seen in the last month or so.
