The Canadian jobs reports continue beating expectations and don’t seem to stop. This time, the report shows a rise of 15.3K jobs in February, much better than predicted. And finally, the unemployment rate follows suit, with a fall to 6.6%.
Adding fuel to the fire, the nation gained no less than 105.K full time jobs while 89.9K part time positions were lost. Big shifts in full-time and part-time jobs are common to these reports. The participation rate slipped from 65.9% to 65.8% explains some of the drop in the unemployment rate.
USD/CAD falls sharply and trades at 1.3430, a fall of around 80 pips.
At the same time, the US also published its own jobs report. Despite a solid gain of 235K and a robust rise in wages, 2.8% y/y, the US dollar sells the fact and drops. This exacerbates the plunge of Dollar/CAD.
Here is how the sharp move looks on the chart:
Canada was expected to report a small gain of 2500 jobs in February after a blockbuster rise of 48.3K in January. The unemployment rate carried expectations for remaining unchanged at 6.8%.
USD/CAD was trading just above 1.35. The loonie suffered quite badly from the crash of crude oil prices.Get the 5 most predictable currency pairs