Canada labor data pack for October:
- Canadian Participation Rate Actual 65.6% (Forecast 65.6%, Previous 65.6%)
- Canadian Unemployment Rate Actual 5.7% (Forecast 5.6%, Previous 5.5%)
- Canadian Average Hourly Earnings YoY Actual 5.00% (Forecast 5.2%, Previous 5.30%)
- Canadian Employment Change Actual 17.5k (Forecast 25k, Previous 63.8k)
In October, Canadian employment remained relatively stable but below expectaionas with a slight increase of 18,000 jobs, while the unemployment rate rose to 5.7%, marking the fourth rise in six months. Construction and culture sectors saw job gains, which were offset by losses in trade and manufacturing.
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Open real account TRY DEMO Download mobile app Download mobile appThe Canadian dollar is strengthening after the release of data against USD. Although the labor market surprised negatively in Canada, at the same time we had the publication of data from the US labor market, which also performed weaker than expectations. So the reaction on the USDCAD exchange rate is a product of two publications. Data from Canada surprised negatively, with the unemployment rate increase. This means that the effects of monetary tightening are beginning to have an impact on the economy. Now, Canadian Money Markets see near 100% chance that Bank of Canada will remain on hold in December up from 92.5% before the jobs data.
Source: xStation 5
