The Unemployment Rate in Canada rose to 5.4% in August from 4.9% in July, Statistics Canada reported on Friday. This reading came in worse than the market expectation of 5%.

Further details of the publication revealed that the Net Change in Employment was -39.7K, compared to the market expectation of +15K. Full-time employment declined by 77.2K and part-time employment increased by 37.5K in the same period.

The Participation Rate improved modestly to 64.8% from 64.7% in July.

Market reaction

With the initial reaction, USD/CAD gathered recovery momentum and erased a portion of its daily losses. As of writing, the pair was still down 0.5% on the day at 1.3028.