According to National Bank of Canada’s analysts, Matthieu Arseneau, the Canadian labor market data shows private jobs still struggling during 2018, despite the rebound seen in September.
Key Quotes:
“Canadian employment surged 63K in September according to the Labour Force Survey, above consensus which was looking for a 25K print. The unemployment rate dropped one tick to 5.9%. Private sector employment rose massively by 96K while public sector jobs remained essentially unchanged and self-employed dropped by 35K.
“Full time employment was down 17K but that was more than offset by the huge 80K gain in part-time positions. Hourly earnings were up 2.4% year-on-year, dropping from 2.9% the prior month.”
“The Canadian jobs report for September was reassuring following August’s huge drop. We are particularly pleased to see private employment bouncing back sharply after struggling for most of the year. True, full-time job creation disappointed in September but they are still up a decent 80K on a year to-date basis vs. a drop of 32K for parttime jobs.”
“We do not think that the central bank is giving significant attention to the LFS soft patch. The Survey of Employment, Payrolls and Hours (SEPH), a survey of establishments is showing a much better picture in 2018 (+202K for the 7 first months of the year vs. 74K for a comparable gauge based on the LFS).”
“We continue to expect the Bank of Canada to resume monetary policy tightening on October 24 in a context where it is hard to justify keeping interest rates below inflation now that uncertainty surrounding US-Canada trade has dissipated.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.