Canada enjoys blockbuster jobs report: +43.1K jobs, 6.5% unemployment

This is far better than expected: Canada gained 43.1K jobs, and the unemployment rate fell to 6.5%. This comes with no change at the participation rate: it remains at 66%.

USD/CAD is plunging to 1.1346.  It’s  important to remember that a stronger US economy is good for Canada, and has a stronger impact on the economy than oil prices.

More details: full time employment is +26.5K and part tipe is +16.5K. This is a good composition. The unemployment rate is the lowest in 6 years.

Canada was expected to report a  loss of 3.9K jobs in the month of October, following a  superb gain of 74.1K jobs in September. The unemployment rate was expected to remain at a low of 6.8%.

USD/CAD traded around 1.1440 before the publication and is deep down.

The US reported a mixed NFP report: 214K jobs gained but with good internals.

The excellent job gains in September were not enough to counter the fall in oil prices and the strength of the US dollar across the board. Dollar/CAD is trading at levels last seen in 2009.

Earlier this week, Canada reported a trade balance surplus, contrary to a bigger than expected deficit in the US. This only temporarily helped the C$. The Bank of Canada is  not too dovish after the recent pick up in inflation. The weaker loonie helps push inflation higher.

For more, see the Canadian dollar forecast.