According to analysts at ING, today’s Canadian jobs report takes on a sizeable resonance given its proximity to the Bank of Canada meeting on Wednesday.
“According to a Bloomberg survey, investors are positioned for a marginal slowdown in jobs growth (+9.9k) from May and a tick-up in the unemployment rate (5.5%) from the current historical lows. Nonetheless, average hourly earnings may grow even faster in June (2.7%). Overall, the report should continue to portray a tight labour market, thereby fortifying expectations for a neutral BoC next week.”
“We expect the loonie to hold its ground better than its G10 peers should US payrolls trigger a dollar appreciation. USD/CAD gains may be limited to the 1.310 level.”