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Canada was expected to gain 21.2K jobs in August after a big loss of 39.4K jobs in July. The unemployment rate was expected to remain unchanged.

USD/CAD was dropping towards the double publication of the US Non-Farm Payrolls and the Canadian job numbers. It traded around 1.0450. — The pair fell to 1.04 but doesn’t dive too low.

Apart from the weak jobs report, also other figures showed weakness in the Canadian economy and weakened the loonie. On the other hand, tensions around Syria pushed oil prices higher and helped the C$.

US Non-Farm Payrolls disappointed with a weak rise, downwards revisions and a low participation rate.

The US NFP is critical for QE tapering, and its impact is bigger than usual this time. So, this Canadian jobs report might be better reflected in Canadian crosses.

For more on the C$, see the Canadian dollar forecast.