The Canadian dollar has been under pressure after the recent disappointing Canadian jobs report. Where next for the loonie and the Bank of Canada?
Here is their view, courtesy of eFXdata:
CIBC Research discusses its reaction to today’s Canadian jobs report for the month of November.
“Canada’s labor market took more than a breather in November, with an apparent massive decline in employment.
Headline jobs fell 71K during the month. While roughly 20K of that drop was due to a reversal of temporary federal election-related hiring, the rest of the weakness was broadly based by industry and by type of employment (both full-time and part-time). The drop left the unemployment rate rising four ticks to 5.9%, and while wage growth held steady at 4.4%, that comes as a weak reading fell out of the annual calculation,” CIBC notes.
“Overall, a weak set of numbers, something that could have the Bank of Canada rethinking its on-hold stance if it were to continue,” CIBC adds.
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