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The USD\/CAD pair exhibits wild moves above the round-level support of 1.3600 in Friday\u2019s American session. The Loonie asset turns volatile after the release of the United States\/Canada Employment data for June.<\/p>\n
The US Nonfarm Payrolls<\/a> (NFP) report showed that labor demand remained stronger-than-expected. Number of workers hired were 206K, higher than the estimates of 190K but lower than the prior release of 272K. The Unemployment Rate rose to 4.1% from the estimates and the prior release of 4.0%.<\/p>\n Meanwhile, Average Hourly Earnings slowed expectedly. Annually, the wage growth momentum decelerated to 3.9% from the prior release of 4.1%. This has eased fears of price pressures remaining persistent. It would also boost expectations of early rate cuts by the Federal Reserve<\/a> (Fed). Currently, financial markets expect that the Fed will start reducing interest rates from the September meeting.<\/p>\n The US Dollar Index (DXY), which tracks the Greenback\u2019s value against six major currencies, remains on the backfoot near 105.00. 10-year US Treasury yields fall sharply to near 4.30%.<\/p>\n In Canada, the labor market faced an unexpected drawdown as 1.4K employees were laid-off. Economists expected the labor market to have witnessed addition of 22.5K payrolls lower than May\u2019s reading of 26.7K. The Unemployment Rate rose at a faster pace to 6.4% from the estimates of 6.3% and the prior release of 6.2%.<\/p>\n Average Hourly Earnings grew strongly by 5.6% from the former reading of 5.2%. This would diminish expectations of subsequent rate cuts by the Bank of Canada (BoC). The BoC delivered its first rate-cut decision in June after maintaining a restrictive interest rate framework for more than four years.<\/p>\nEconomic Indicator<\/h2>\n
Average Hourly Wages (YoY)<\/h3>\n