The Canadian dollar soared to multi-day highs against other major currencies during early North American session on Friday.
Canada’s unemployment rate dropped below 8% for the first time in more than a year in June, as employers continued to add jobs in a robust recovery for the nation’s jobs market.
Employment rose by 93,000 in June, pushing the unemployment rate down 0.2 percentage points to 7.9%, according to data from Statistics Canada released today.
This is the first time the rate has been below the 8% mark since January 2009.
Employment increases were evenly split between full and part time in June. Since July 2009, most of the employment gains have been in full-time work, up 355,000 or 2.6%, while part-time work rose by 1.5%.
The Canadian dollar soared against other major currencies on the back of the unemployment data.
The Canadian dollar rose to an 8-day high of 1.3046 against the euro at 8:35 am ET. If the loonie gains further, it may target around the 1.270 level. As of now, the loonie is worth 1.3053 against the euro, compared to yesterday’s close of 1.3236.
In economic news, German consumer price annual inflation slowed to 0.9% in June from 1.2% in May, final data from the Federal Statistical Office showed today. The rate is still well below the threshold of 2%, which is important for monetary policy, the statistical office said.
In addition to the German CPI data, French and Italian industrial production reports for May likely influenced the euro.
Against the U.S. dollar, the Canadian dollar hit an 11-day high of 1.0327 at 7:50 am ET. On the upside, the loonie may target around the 1.014 level. The loonie, which bought 1.0425 against the greenback at yesterday’s close, is now worth 1.0337.
The Canadian dollar advanced to a 2-day high of 0.9034 against the Australian dollar at 8:35 am ET. At present, the loonie is trading at 0.9040 with 0.887 seen as the next upside target level. The loonie bought 0.9149 against the aussie at Thursday’s close.
The Canadian dollar jumped to a 10-day high of 85.82 against the yen at 7:30 am ET, an appreciation of 1.16%, from yesterday’s close of 84.82. Currently, the loonie-yen pair is worth 85.72. The loonie may target around the 90.10 level, if it gains further.
From the U.S., the Commerce Department is due to release its wholesale inventories report at 10:00 am ET. Economists expect wholesale inventories at the end of May to show a 0.4% increase.