The Canadian labour market continues to defy gravity with employment rising by another 35K in March. Limited reaction in CAD though. A solid US payrolls number in the upcoming report could support USD/CAD in the very near-term, economists at TD Securities report.
Canadian labour market still red hot in March
“The Canadian labor market added 35K jobs in March, beating market estimates of 7.5K. The unemployment rate was unchanged at 5.0%, and wage growth slowed to +5.2% YoY from +5.4% YoY.”
“The CAD was little changed after the numbers although this may have been a function of the US claims data, liquidity issues over the long weekend and the simultaneous release of US payrolls tomorrow.”
“The moderation in wage numbers may be somewhat encouraging for the BOC, although the firmness of job growth offsets that somewhat.”
“Aggresive dovish revaluations in the Fed funds curve and our expectations for a firmer NFP print create upside downside risks to USD/CAD. If NFP should surprise below consensus, however, 1.3380/00 will be important support.”
See – US Nonfarm Payrolls: Banks Preview, Labor Market Still Strengthening
