The Canadian dollar tumbled to its lowest level in four months on Monday, experiencing its largest single-day drop since May, following the unexpected cancellation of key U.S. economic data.the loonie fell 0.7% to 1.3735 per U.S. dollar, according to Refinitiv data, as the postponement of a crucial U.S. employment report rattled markets and bolstered the greenback.
The postponement of the U.S. JOLTS (Job Openings and Labor Turnover Survey) report,typically released on the first Tuesday of the month,has injected uncertainty into the economic outlook,impacting currency valuations globally. The canadian dollar, often correlated with commodity prices and U.S. economic performance, is notably sensitive to shifts in American data. Investors are now awaiting rescheduled data releases for clarity on the Federal Reserve’s potential monetary policy path, with implications for interest rate differentials between the U.S. and Canada and, consequently, the loonie’s trajectory.
The JOLTS report was delayed due to a technical issue within the Bureau of Labor Statistics, the agency announced. While a new release date hasn’t been set, the delay adds to market anxiety already fueled by recent strong U.S.economic indicators.
“The postponement of the JOLTS data is a wrinkle in the market’s attempt to assess the strength of the U.S. labor market,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets. “It’s creating a bit of a pause, and in that environment, the dollar is benefiting from its safe-haven status.”
The U.S. dollar index, which measures the greenback against a basket of major currencies, rose 0.4% on Monday. Oil prices, another key driver of the Canadian dollar, were mixed, with Brent crude settling down 0.3% at $88.83 per barrel.