Canadian jobs drop; USDCAD back near 1.34

Summary:

• Canadian employment change: -7.2k vs +6.0K exp

• Full time roles: -6.4k vs +5.4k exp

• Cad dips lower with USDCAD back near 1.34 handle

After Canadian employment figures in February soared and even topped their US counterparts in terms of jobs added, March saw a reversion to the mean with a small drop posted. The net change in employment fell by 7.2k vs an expected rise of 6.0k, after last month saw a print of 55.9k. The unemployment rate remained at 5.8% as expected.

A key aspect of the Canadian employment numbers to watch out for are the composition of the jobs added with full-time roles prized above part-time work. Here there was a similar story to that of the headline, with a drop of 6.4k in full-time employment, versus an estimate of 5.4k. The prior was particularly strong at 67.4k. The part-time employment figure was -0.9k vs +7.0k expected and -11.6k last month.   

Canadian jobs figures pulled back last month but they still remain pretty strong compared to recent years. Source: XTB Macrobond

The Canadian dollar has softened a little since the release but if truth be told the market reaction has been not too severe. This is likely because the longer term picture remains fairly positive for Canadian employment and the drop in March is seen as a pullback after a good run higher of late. USDCAD has moved back up near the 1.34 handle since the release but the market is so far failing to make a big move stick. After dropping lower on Monday price is now back higher on the week but longer term the market appears to be in consolidation mode and has been in a fairly narrow range from around 1.3290 to 1.3465 for the past month.

USDCAD has gained since the release and is trading not far from its highest level of week. Having said that the range from 1.3290-1.3465 remains in tact. Source: xStation