USD/CAD climbs after Canada jobs data surprises to the downside.
USD/CAD edges higher on Friday as softer-than-expected Canadian employment data weighs on the Canadian Dollar (CAD), even as the US Dollar (USD) remains on the back foot following mixed US labor market data and hopes for a US-Iran deal to end the war. At the time of writing, the pair is trading around 1.3694 after briefly testing the 1.3700 mark, its highest level since April 29. Data released by Statistics Canada showed that Net Change in Employment fell by 17.7K in April, sharply missing market expectations for a 15K increase and reversing the 14.1K gain recorded in March. The Unemployment Rate edged higher to 6.9% from 6.7% previously, while Average Hourly Wages slowed to 4.8% YoY in April from 5.1% in the previous month. The growing slack in Canadas labor market could force the Bank of Canada (BoC) to reassess its monetary policy outlook, potentially limiting its ability to tighten policy if Oil-driven inflation pressures intensify. USD/CAD is also on track to end a four-week losing streak as a sharp pullback in Oil prices pressures the commodity-linked Loonie. The Canadian Dollar tends to be highly sensitive to movements in crude Oil, as Canada is one of the worlds largest Oil exporters. Meanwhile, the US