Week in FX Americas – CAD’s Participation Rate Follows The US

Canada can be proud – it’s broken the +7% barrier! In fact the new unemployment rate dipped to +6.9%, the strongest headline print in five-years after the Canadian economy added another +11.9k new jobs in September. Digging deeper, the revelation would suggest that the country in love with the “maple leaf,” has caught the participation rate flu it southern neighbor below the 49th parallel has been suffering from of late.

The bulk of the decline can be attributed to an exodus from the labor force by the 15 to 24 year old age group. In the grand scheme of things, and because of the particular age group profile, it’s reasonable to assume that the “young” generation over time will renter the workforce thereby upping the “new lower” participant rate. Governor Poloz at the Bank of Canada will want to see if the lower participation is in fact only a temporary shift “allowing it to remain on the sidelines without worrying too much about inflation.”

• U.S. Shutdown Impacts Trade –
• Treasury Secretary Lew: U.S. poised to Default –
• US Debt Ceiling could have Far Reaching Impact –
• TPP Members Agree to Tariff Elimination –
• Moody’s Estimates 1 Month US Shutdown Will Cost $50 Billion –
• US Shutdown Will Increase Volatility Premiums –
• U.S. Default Seen as Potentially Catastrophic –
• Fed’s Fisher Embarrassed by US Congress –
• Janet Yellen’s Patience Pays Off –
• Three Reasons why the Fed may Keep Stimulus in Place –
• IMF Concerned about Fed’s Next Move –
• U.S. Default Fears are Increasing –
• IMF: Start of Fed Tapering may cause Substantial Bond Losses –
• Fed Stimulus Kept Intact due to Anxiety –
• U.S. Dollar up from Eight-Month Low after Yellen News –
• G20 Warns US About Effects of Default –
• IMF Says Central Banks Should be Independent With Banking Oversight –
• US On Its Way to Become World’s Top Oil Producer –
• IMF and OECD Urge US To Solve Shutdown –
• US Shutdown Both Parties Agree to Seek An Agreement –
• Officials Split on Fed Policy –
• Talks on Debt Shifts the Tone –

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.