CAD: Glimmer of hope on the labour market – Commerzbank
|The Canadian labour market figures for September, published on Friday, came as a pleasant surprise. Instead of the expected 5,000 jobs, the Canadian economy created more than 60,000 jobs, led by full-time positions. At the same time, the unemployment rate fell despite a higher participation rate. Overall, therefore, this was a very positive labour market report, Commerzbank's FX analyst Michael Pfister notes.
Labour market figures are likely to remain volatile
"This was good news for the CAD, which was able to recoup some of the losses it had incurred against the US dollar on Thursday. This makes another interest rate cut by the Bank of Canada at the end of the month somewhat less likely. However, it should be noted that Canadian labour market figures have been exceptionally volatile over the last four months."
"June saw significant job growth, followed by two weak months, and now another strong month. I would therefore be cautious talking about a trend reversal at this stage."
"As long as relations with Canada's southern neighbour remain tense and sentiment indicators do not improve significantly as a result, labour market figures are likely to remain volatile and show no fundamental improvement. This is likely to make things difficult for the CAD in the coming months."
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.