June US Nonfarm Payrolls rose by 57K, far below the 110K forecast, weighing on the USD and Fed rate hike bets.
USD/CAD fell 0.26% to 1.4180 on Thursday, touching a one-week low of 1.4150 after US jobs data disappointed. The US economy added 57K Nonfarm Payrolls in June, missing the 110K consensus and marking a sharp slowdown in hiring.
May’s payrolls were revised down to 129K from 172K, while April’s figure was cut to 148K from 179K, totaling a 74K downward revision. The Unemployment Rate dipped to 4.2%, but Labor Force Participation slid to 61.5%. Average Hourly Earnings matched expectations at 3.5% YoY.
Markets reacted by scaling back Fed rate hike expectations, with odds for two hikes this year dropping to 27.8% from 31.9%. The Canadian PMI rose slightly to 53 in June, but the CAD’s gains were driven by USD weakness.