Canada: Employment data supports the call for a 50bp hike at December – CIBC
|The Canadian employment report surpassed expectations with a positive change in emlyment of 108K above the 10K of market consensus. Analysts at CIBC point out the surge could simply be a sign that some of the declines seen over the summer were simply statistical noise. According to them, the data support their call for a further 50bp interest rate hike at that time, but they warn there is still one more employment report to come before the next Bank of Canada (BoC) meeting.
Key Quotes:
“The big rebound in employment during October, accompanied by a rebound in the size of the labour force, is likely a sign that the declines seen over the summer were largely statistical noise, rather than a sign that the labour market truly surged ahead this month.”
“The breakdown of employment showed that all of the jobs created were full time positions, with part time actually down slightly relative to the prior month. Most of the jobs created were among private sector employees, although public sector employment and self-employment also rose.”
“Today's data support our call for a 50bp hike at the December meeting, rather than a more standard 25bp move, although there are plenty of economic data releases still between now and then, including one more labour force survey.”
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.