USD/CAD – Loonie rocks on Canadian Job Report

  • CAN Nov jobs: +79.5k (exp. +10k, last +35.3k)

  • Unemployment: +5.9% (exp. +6.2%, last +6.3%)

  • Full-Time Jobs +29,600; Part-Time +49,900
  • The Canadian labor market continues to defy expectations, as the economy recorded the biggest one-month job gain in nearly six years while the unemployment rate dropped below the psychological +6% benchmark.

    The Canadian economy added a net +79,500 in November on a seasonally adjusted basis (the best one-month print since April 2012).

    The market consensus was for a 10,000-job advance.

    The unemployment rate fell to +5.9% from a +6.3% level in October – the lowest unemployment rate in nearly a decade.

    Wage growth also accelerated, with average hourly pay rising at its fastest pace in 19-months, up +2.8% y/y.

    The loonie is up +0.85% outright, trading at C$1.2769.

    Food for thought: Canadian minimum wages goes up in January 2018, will some of these short-term job gains be reversed?

    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