“The Canadian economy added 56k jobs in February, well above the market consensus for unchanged employment, while further gains in labour force participation saw the unemployment rate hold at 5.8%,” noted TD Securities analysts.
“Wage growth for permanent employees firmed to 2.2% y/y which added to the upbeat tone of the report, although this will do little to change convictions at the Bank of Canada where the broader slowdown is a more important factor.”
“Rates: The knee-jerk move higher in CAD rates should be short-lived, and we continue to favour owning the CAD front-end outright or versus the US, and we like owning the belly versus long bonds.”
“FX: The CAD received a jolt of life, but we think this should be faded as the currency’s prospects remain troubled with limited to no policy impulse. 1.3380/1.3400 remains formidable support.”