By CountingPips.com
Canadian employment data released today showed that jobs rose by more than expected in June and boosted the Canadian dollar sharply against the other major currencies. Today’s jobs report showed that employment rose by 93,000 workers in June following a gain of approximately 24,700 jobs in May, according to the monthly report by 
Statistics Canada.
The jobs data easily surpassed the market forecasts which were predicting an increase by approximately 20,000 workers for the month.
The Canadian dollar reacted positively to the news and quickly gained ground against the US dollar, euro, Japanese yen, British pound, Australian dollar, and the New Zealand dollar in the forex markets today. The Canadian currency now trades at its highest level against the US dollar since June 23rd at close to the 1.0315 exchange rate while also advancing to the highest levels against the Japanese yen and British pound sterling since June 28th.
The unemployment rate declined to 7.9 percent from 8.1 percent as the unemployment rate has now fallen below 8.0 percent for the first time since January 2009. In the period from July 2009 through June 2010, Canadian employment has advanced by 403,000 workers or 2.4 percent, according to the report.
Service-sector employment was the main driver for jobs in June with an increase by 103,000 hires while the goods-producing sector employment fell by 10,200 workers. The trade sector, health care & social assistance and business, building and other support services all showed increases for the month by approximately 20,000 jobs. The professional, scientific & technical services sector, accommodation and food services sector and the other services sector all had job gains of 11,000 or more in June.
The province of Ontario led the way in job growth for June with a gain of 60,000 jobs while Quebec also added 30,000 workers. Ontario employment has now increased for six straight months and by 187,000 workers since July 2009 while Quebec has increased its job growth by 117,000 workers since July 2009.
Other data released from Canada today showed that housing starts fell in June to an annualized rate of 189,300 from a revised 195,300 level in May, according to the Canada Mortgage and Housing Corporation. The data failed to meet market forecasts that were expecting 190,300 housing starts for the month.
Forex Chart: EUR/CAD Hourly – The euro falling sharply today against the Canadian dollar following the better than expected Canadian jobs report. The EUR/CAD now trades at its lowest level in over a week as the pair fell through its 200-hour moving average (red line) and into oversold territory on the relative strength indicator in today’s action.
