• Canada added 39.8K jobs in May, more than expected. 
• The loonie strengthened against most of its peers in wake of the robust data. 

The Canadian economy added 38,900 jobs in May, according to the latest data released by Statistics Canada on Friday. That was above expectations for a 30,000 rise and above last month's 15,300 reading. 

The gain in full-time employment was a robust 135,400 while part-time employment fell by 95,800. Meanwhile, the unemployment rate fell unexpectedly to 5.1% in May from 5.2% a month earlier. The participation rate was unchanged at 65.3%. 

Market Reaction

The loonie saw immediate strength versus the majority of its major G10 peers in wake of the robust labour market data, which supports the case for aggressive BoC tightening.