Trading the News: Canada Net-Change in Employment

Another 15.0K expansion in Canada Employment may fuel fresh 2017-lows in USD/CAD as it puts pressure on the Bank of Canada (BoC) to implement additional rate-hikes over the coming months.

The BoC may move to the sidelines after delivering two consecutive rate-hikes as the central bank notes ‘Future monetary policy decisions are not predetermined and will be guided by incoming economic data and financial market developments as they inform the outlook for inflation.’ Nevertheless, Governor Stephen Poloz and Co. appear to be on course to further normalize monetary in 2018 as ‘the level of GDP is now higher than the Bank had expected,’ and the central bank may continue to change its tune over the coming months as ‘growth in Canada is becoming more broadly-based and self-sustaining.’

Impact that Canada’s Employment report has had on USD/CAD during the previous print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUL

2017

07/12/2017 14:00:00 GMT

12.5K

10.9K

+48

+87

July 2017 Canada Net-Change in Employment

USD/CAD 5-Minute Chart

The Canadian economy added another 10.9K jobs in July following the 45.3K expansion the month prior, while the Unemployment Rate unexpectedly slipped to an annualized 6.3% from 6.5% as the Participation narrowed to 65.7% from 65.9% during the same period. Nevertheless, a deeper look at the report showed the gains were led by a 35.1K expansion in full-time employment, while part-time positions narrowed 24.3K after climbing 37.1K in June. The Canadian dollar struggled to hold its ground following the mixed report, with USD/CAD clearing the 1.2600 handle to end the day at 1.2649.