Canada gained 10K jobs in September, slightly below expectations. However, the unemployment rate remains at 6.2% and did not rise. The participation rate dropped from 65.7% to 65.6%.
The good news comes from the composition of jobs: full-time jobs are up 112K and part-time jobs are down by 102K. This looks quite messy, to say the least. Nevertheless, it keeps the Canadian dollar higher.
USD/CAD is falling to 1.2550 in very choppy trading.
In the US, the economy lost 33K jobs but wages jumped.
Canada was expected to report a gain of 13.9K jobs in September after 22.2K in August. The unemployment rate was projected to rise from 6.2% to 6.3%.
USD/CAD traded around 1.26 ahead of the publication. Note that the US Non-Farm Payrolls report is released at the same time.
USD/CAD was moving higher in recent days, mostly due to the strength of the greenback. Positive economic data from Canada’s southern neighbor sent the pair higher. In Canada, the trade balance missed expectations.
All in all, the Canadian job market enjoys a good 2017. Most jobs reports have exceeded expectations and this has been one of the main reasons for rate hikes by the BOC.
The Canadian dollar had a great 2017 as well, with USD/CAD going as low as under 1.21. Since then, doubts about the next moves by the BOC and the greenback’s strength pushed the pair higher.
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