According to analysts at National Bank Financial, May’s labour force survey will draw the most attention this week for the Canadian markets.
Key Quotes
“No less than 222K jobs were added in the country in the first four months of the year, the best tally on record. That pace is unsustainable in a context of growing labour shortages in several provinces and we suspect we’ll see a sharp moderation in coming months, starting with a -20K print on Friday. The unemployment rate, meanwhile, could rise one tick to 5.8%, assuming the participation rate stayed put at 65.9%.”
“We’ll also get data on April’s merchandise trade balance. Rising commodity prices during the month should have allowed nominal exports to expand for the second month in a row, a development that could lead to a reduction of the trade deficit to around C$2.8 billion. Markit’s Manufacturing PMI for May will also be available this week.”
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