Week in FX Americas – Canada Bests US Jobs by a Country Mile

It’s not true – the Toronto Star did not hire an extra +35k employee to follow their beleaguered Mayor. Canada posted an eye-popping, decade best, +95k new jobs in May. To understand somewhat the significance of the print – by superimposing it on its largest trading partners economy, the US, that’s the equivalent of nearly +1-million new jobs being created down south. In contrast, the US managed to edge market expectations by a whisker, printing+175k new jobs in May.

Both countries unemployment rates are heading in opposite direction. Canada has managed to shave 2/10th off theirs, to report a +7.1% unemployment rate, while the US adds a 1/0th to up theirs to +7.6%. However, buyer loonie beware. This Canadian jobs report should be taken with a grain of salt, as one employment report does not completely change a trend.

Least we forget, in March Canada’s commodity, interest rate sensitive sister country down-under, Australia happened to release a similarly strong report (+71.5k), allowing the AUD to scream higher to only quickly reverse both the currency and job gains the next month. Fundamentals aside, a large percentage of speculators are short the CAD at higher levels and this markets swift move, especially the EUR/CAD will keep the commodity favored currency bid in the short term.

• Canada Posts Biggest Job Gain in 10-Years on Construction
• US posts 175K NonFarm Payrolls Deflates EUR/USD
• USD/CAD to Below 1.03 on New BOC Governor Poloz’s Comments
• May U.S. Job Data Widely Viewed as Critical
• US Unemployment Claims Drop before NFP
• U.S. Service Industries Expanded at Faster Pace in May
• U.S. Dollar Reaches a Month Low on Fed Outlook
• US Productivity Revised Lower
• US Factory Orders April Rise Disappoints
• US Treasuries Advance as Slide in Equities Boosts Demand for Safety
• US Companies Add Fewer Workers In May
• Fed Stimulus Uncertainty Hangs Over Asian shares
• USD/CAD Back Above 1.0350 as Wider Trade Deficit Undercuts Growth
• Pimco Bill Gross Takes Aim at Bernanke
• US Trade Deficit Rises 8.5 Percent in April
• US Sanctions Iranian Currency Transactions
• US Manufacturing Unexpectedly Falls in May

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.