Canada’s unemployment rate for August remained at 5.5%, matching expectations and defying predictions of a rise from July. Job growth for the month was impressive, with an increase of 39,900 employed individuals, a significant improvement from July’s decrease of 6,400. This better-than-expected job growth indicates an improvement in Canada’s labor market.
The positive employment-related data from Canada has bolstered the Canadian dollar. USD/CAD dropped from 1.3667 Canadian dollars to 1.3611 Canadian dollars, hitting a five-day low. CAD/JPY also rose from 107.80 yen to 108.26 yen.
Given this situation, it’s a good time to consider a buying perspective on CAD. As you mentioned earlier, you’ve entered a short position on USD/CAD.