Error in Canada's July jobs data to be amended on Friday - TD Securities

FXStreet (Łódź) - The TD Securities team of analysts report that Statistics Canada announced there had been a mistake in Canada's July jobs data released last week and that the correction would be revealed on Friday, which caused the USD/CAD to drop sharply.

Key quotes

"Having been disappointed by the paltry +0.2K – now erroneous – initial report, market participants sought vindication in assuming the revision will land much closer to the 20K consensus call."

"Consequently, Canadian fixed income sold off and USDCAD dropped precipitously, eventually bottoming out at 1.0914 and recovering to a flat close on the day."

"However, given that the soon-to-be-amended employment figures showed a very weak 42K decline in Construction jobs and an equally baffling 32K gain in Education, and the notorious volatility of employment data, a strong print is far from certain."

"Yet the market already priced in a significant upside correction as funds closed yesterday just 10 points above Friday's level prior to the release."

"Although support still holds in the low 1.09s, recent price action suggest limited upside from current levels and a larger risk that we could see a break of support and a push lower towards 1.0880, where funds should find a firmer basis."