Week in FX Americas – NFP Beat Caps A Better Week For The Dollar

The individuals who sold the loonie on the appointment of Stephen Poloz, as new Governor at the Bank of Canada got small burnt. The positive USD/CAD bounce for the unknown new banker did not last too long. In hindsight, the trigger-happy loonie bears should have probably waited until after the US non-farm payroll release to express their concerns – they would have had better bandwidth.

Friday's US payrolls happen to only reaffirm the moderate trend and nothing out of the extraordinary despite the report being better than expected. The headline non-farm payroll print increased by +165K and combined nicely with a substantial upward revision to the previous two-months (+114K). Digging deeper and the highlight for the month of April were the gains in the private services (+185K). Retail trade jobs surprised to the upside again, rising by +29K, and business services increased by +73K. Goods producing sectors actually declined by -9K, on lower non-residential construction. ...