Canada has reported a loss of 1,010,700 jobs in March, around triple the early estimates. The unemployment leaped to 7.8%, also worse than expected.
USD/CAD initially jumped but then dropped back down.
— more to come
Canada was expected to report a loss of around 350,000 jobs in March, due to the coronavirus outbreak. The nation reported a leap in jobless claims last month, with applications hovering around one million at one point. The Canadian government took steps to keep people at work as well as to help the unemployed while imposing lockdowns.
Economists expected the unemployment rate to jump from 5.6% to 7.2% despite a projected drop in the participation rate from 65.5% to 65.1%. Wage growth stood at 4.33% yearly in February.
Statistics Canada said that it will attempt to adjust the figures for the disruptions caused by coronavirus.
The US has released weekly jobless claims at the same time, which were forecast to stand at 5.250 million in the week ending April 3.
USD/CAD has been trading above 1.40 ahead of the publication, whipsawed alongside oil price. The OPEC+ meeting led by Saudi Arabia and Russia is deliberating reducing oil output. Falling demand due to COVID-19 and a price war between the two petrol exporters have sent oil prices plunging. Oil producer in the Canadian province of Alberta has also been involved in talks aimed to stabilize prices.
USD/CAD ahead of the publication, click to see a live chart:
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