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.”


WEEK AHEAD

* CNY Consumer Price Index
* GBP Consumer Price Index
* EUR German ZEW Survey
* NZD Consumer Prices Index
* GBP Jobless Claims Change
* EUR Euro-Zone Consumer Price Index
* GBP Retail Sales
* CNY GDP YTD
* CAD Consumer Price Index

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.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell