A blockbuster jobs report from Canada: a gain of 74.1K jobs in September, more times the early expectations. The unemployment rate dropped to 6.8% from 7% beforehand.
USD/CAD is sliding on the great news, but it seems the markets see it as too good to be true. The pair dropped from around 1.1210 to 1.1160, which is significant, but not proportional to the huge gain in jobs.
Canada gained 69.3K full time jobs and 4.8K part time jobs. The participation rate dropped to 66%, the lowest since 2001 but still above the US 62.7%.
Canada was expected to report a gain of 18.7K jobs in September, after a loss of 11K in August. The unemployment rate was predicted to remain unchanged at 7%. This time, these numbers got the full attention, as the US NFP report was already published.
USD/CAD was trading around 1.12 towards the publication.
See the preview: Canadian Employment Data: What To Expect & How To Position? -Credit Agricole
The Canadian authorities had some issues with reporting the employment data back in July, and hopefully this belongs to the past.
The pair has been rising mostly on the strength of the US dollar, but also due to the weakness in oil prices.
For more, see the Canadian dollar forecast. Here is how it looks on the chart:
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