2023.06.0914:21:00UTC+00Canadian Dollar Retreats As Employment Falls Unexpectedly

The Canadian dollar eased against its major counterparts during the New York session on Friday, following the release of disappointing jobs data for May.

Data from Statistics Canada showed that the employment fell by 17,300 jobs in May, after rising by 41,400 jobs in the previous month. Economists had expected employment to increase by 23,200 jobs.

The unemployment rate rose to 5.2 percent in May from 5 percent in April. The rate was expected to rise to 5.1 percent.

Traders look ahead to the Federal Reserve's monetary policy decision due next week.

The Fed is widely expected to leave its policy rate unchanged at 5.00 percent - 5.25 percent.

The loonie eased to 1.3368 against the greenback, from an early more than 4-week high of 1.3316. The loonie is seen finding support around the 1.38 level.

The loonie retreated to 1.4397 against the euro and 104.10 against the yen, from its early highs of 1.4344 and 104.73, respectively. The next possible support for the currency is seen around 1.46 against the euro and 102.00 against the yen.

The loonie was down against the aussie, at a 3-week low of 0.8999. Next key support for the loonie is seen around the 0.92 level.