The Canadian โdollar tumbled to its lowest level in four months on โMonday,โ experiencing its largest single-day drop since May, followingโ the unexpected cancellation โขof key U.S. economic โdata.theโค loonie fell 0.7% to 1.3735 per U.S. dollar, according to โRefinitiv data, as the โpostponement of a crucial U.S. employment report rattled markets and bolstered the greenback.
The postponement โof the U.S. JOLTS (Job Openings and Labor Turnover โSurvey) report,typically released โขon the first Tuesday of the month,has injected uncertainty โคinto the economic outlook,impacting currency valuations โคglobally. โขThe canadian dollar, often correlated with commodity prices and U.S. economic performance, is notably sensitive to โshifts in American data. Investorsโ are now โฃawaiting rescheduled dataโค releasesโค for clarity on the Federal Reserve’sโ potential monetary policy path, with implications for โinterestโ rate differentials between the U.S. and Canada and,โ 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 โrelease date hasn’t been set, the delay adds to market anxiety โขalready fueled by recent strongโฃ U.S.economic indicators. โ
“The โคpostponement of the JOLTS data is aโข wrinkle โขin the market’s attempt to assess the strength of the U.S. labor market,”โข said Bipan Rai, North American head of FX strategy at CIBC โCapital Markets. “It’sโค creating a bit of a pause, and in that environment, the dollar is benefiting from its safe-haven status.”
The U.S. dollar index, whichโ measures the greenback against a basketโ of major currencies, rose 0.4%โค on Monday.โ Oil prices, anotherโข key driver of the Canadian dollar, were โmixed, with Brentโค crude settling โdown โ0.3% at $88.83 per barrel.
