The Loonie dropped initially against the US Dollar on disappointing Canada’s labour market data. The USD/CAD currency pair added 64 base points or 0.51% to touch the 1.2670 mark.
The economy of Canada lost the most positions in nine years in the beginning of 2018, confirming expectations that the BoC would keep rates on hold next month. Statistics Canada reported a decrease of 88K jobs in January, missing expectations for a 10K gain. Meanwhile, the unemployment rate increased to 5.9% in the reported month from December’s 5.8%. Analysts suggested that the report is unlikely to change the trajectory of the Bank of Canada of a gradual monetary tightening path to come this year.
