The Canadian dollar strengthened to 1.41 per USD, recovering from a 15-month low of 1.425 reached on June 28th, after employment data came in stronger than expected. Canada added 18,200 jobs in June, following an 88,000 gain in May, while the unemployment rate unexpectedly declined, matching its lowest level in nearly two years. This eased concerns about economic weakness and reduced the likelihood of a rate cut by the Bank of Canada.
At the same time, oil prices pulled back amid signs that diplomatic efforts between the US and Iran remain on track despite recent tensions, alleviating some energy-driven inflation worries. Meanwhile, the US dollar stayed firm, supported by expectations that the Federal Reserve could raise interest rates later this year.
