In addition to the US NFP employment data, the market also saw the production of Canadian employment data which showed slower growth and thus provided an opportunity for the US dollar to rise higher against the loonie.
Data from Statistics Canada reported the country added 64,000 jobs in July, lower than market expectations for an increase of 150,000 jobs. The reading also shows a decline from the previous month’s record of 230,700.
Meanwhile, Canada's unemployment rate fell to 7.5% from 7.8% previously recorded, and slightly off track from expectations of a decline of 7.4%. Employment remained 1.3% below the February 2020 level.
According to analysts, job growth tends to slow as many employers report labor shortages due to receiving help from stimulus measures from the government and concerns about high workplace risks.
The Canadian dollar continued to trade lower in Monday’s trading session, as the US dollar continued to maintain its strength against most of its major rivals following encouraging NFP data.
Meanwhile, the slump in world crude oil prices also affected loonie dollar trading, which was weighed down by concerns that the global contagion of the Delta variant would weaken the outlook for fuel demand.
