Canadian Jobs Boost CAD, NFP miss hurts Dollar

Strong Canadian Payrolls

The Canadian economy added a net +32.3k jobs in March on a seasonally adjusted basis, all of which were in the full-time category. Market expectations were for a net gain of +20k.

  • Full Time Employment Change: +68.3k vs. -39.3k prior
  • Part Time Employment Change: -35.9k vs. +54.7k prior
  • Participation Rate: 65.5% v 65.5% prior
  • Canada’s unemployment rate was unchanged at +5.8%% last month as the labor force expanded and full-time hiring surged, partially retracing steep job losses that took place in January.

    The loonie has caught a bid on the strong report, currently up +0.15% at CAD$1.2751

    U.S Job Growth Slows in March; Unemployment Rate Holds at +4.1%

    The pace of hiring stateside slowed in March and the unemployment rate held at a 17-year low.

    U.S nonfarm payrolls rose a seasonally adjusted +103k, a sharp slowdown from February’s gain of +323k (revised).

    The unemployment rate was a seasonally adjusted +4.1% for the sixth consecutive month.

    Figures for January and February were revised down, subtracting -50k jobs from the first two months of the year. The U.S added +326k in February and +176k in January.

    Note: In Q1, employers have added an average of +202k workers to payrolls, outpacing last year’s average growth of +182k per report.

    A tighter labor market should also produce better wage growth, but so far that’s failed to materialize. Average hourly earnings for all private-sector workers increased +8c to +$26.82. Wages rose +2.7% y/y in March.

    Stock futures have edged slightly lower after the release, while the U.S 10-year Treasury yield has edged lower, down -2 bps to +2.8%, while the USD has slipped -0.2% against G7 currency pairs.

    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