The Canadian economy shed 52k jobs in August, falling well below of expectations for a 5k increase.
Key Quotes
“Wage growth decelerated, but otherwise the underlying details cushioned the blow as full-time/part-time split was favourable.”
“Taking a step back, the 3-month average pace of hiring sits at a respectable 11k, and the Bank of Canada described wage growth as moderate this week so the deceleration in average hourly wages won’t come as much of a surprise.”
“The Bank of Canada will rightly look through the noise in this report and we still see an October hike as very likely.”
“FX: The clear divergence in the dual payrolls headlines led to a knee-jerk spike in USDCAD, and the stronger tone of the US report should lend some support to DXY ahead of the weekend.”
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