“The Canadian economy added 67k jobs in January, well in excess of the market consensus for a 5k increase,” note TD Securities analysts.
Key quotes
“A 0.2pp increase in the participation rate saw the unemployment rate rise to 5.8% (market: 5.7%) while wage growth for permanent employees firmed modestly to 1.8% y/y.”
“The combination of robust job growth, firmer wages and a drift higher in the participation rate make for a strong report on all fronts. This should help support the Bank of Canada’s bias towards higher rates, although the weakness across the energy sector and Alberta provide evidence of the headwinds to the economy in Q1.”
“FX: USDCAD collapsed following the report but we think the dip should be faded towards 1.3220. CAD’s beta to risk and oil have risen appreciably suggesting difficulty in sustaining gains with any degree of confidence amidst a slowing global growth backdrop.”
Share
