The USD/CAD pair fell around 200 pips at the end of last week due to the economic data from Canada and the US. Canada’s economy unexpectedly accelerated at a 4.5 percent pace in the second quarter. The expansion was the fastest in six years and surpassed the 3.7 percent first quarter growth rate, which was left unchanged by Statistics Canada. As a result of this growth, Bank of Canada will continue raising interest rates this year - possibly as soon as next week - as the nation’s economy nears full capacity in what is turning out to be the strongest growth spurt in more than a decade. According to Doug Porter, chief economist at Bank of Montreal, “the hits just keep coming for the Canadian economy”. “Even the naysayers will struggle mightily to find fault in this rock-solid report.”, added Porter.
USA: Only 156,000 jobs in August
U.S Consumer sentiment pulled back to a final August reading of 96.8 in August from a preliminary reading of 97.6, according to the University of Michigan gauge released Friday. The U.S. economy created 156,000 jobs in August while the unemployment rate edged higher to 4.4 percent, according to a closely watched government report Friday. Economists surveyed by Reuters had been expecting payrolls to grow by 180,000 in August and the unemployment rate to hold steady at 4.3 percent. In addition to missing estimates, previous months' job totals also were cut. June was revised down from 231,000 to 210,000 while July fell from the initially reported 209,000 to 189,000, the Bureau of Labor Statistics said. The average work week declined by 0.1 hour to 34.4 hours.