Canada employment grew 13.8k in May, much better than anticipated (median 5.0k) following the 2.1k dip in April. Full time employment surged 60.5k in May after falling 2.4k dip in April. Part time employment fell 46.8k in May after the 0.4k rise in April. The unemployment rate fell to 6.9% in May (median 7.1%) from 7.1% in April. The participation rate was 65.7 in May versus 65.8 in April.
USDCAD reacted lower on the surprisingly good numbers and hit a support at 1.2656. Should this support hold the market will challenge the 1.2767 resistance. However, the pair is in a downtrend and the likelihood of supports being broken is higher than that of resistance levels. In the event of market breaking lower the May low at 1.2464 will come into play.
Chief Market Analyst
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