Canada: 53k jobs added in September – TD Securities

Analysts at TD Securities point out that the Canadian economy added 53k jobs in September, beating the market consensus for +7.5k.

Key Quotes

“Details were largely upbeat with full time employment (+70k) leading job growth while the one wrinkle was a modest pullback in private employment (-21k). However, this comes on the heels of outsized gains during August, and private employment is still 70k higher over the last two months.”

“The robust job growth was not the only positive element of this report; the unemployment rate fell to 5.5% in September while wage growth firmed back to 4.3% y/y (from 3.8%). The former is even more impressive when considering the participation rate has increased 1.4pp from last October and more comprehensive measures that capture discouraged and involuntary part time workers showed similar improvement, with the R8 rate falling from 8.1% to 7.8% (pre-crisis low was 8.3%). Hours worked fell by 0.3% m/m, but that shouldn't take much away from the overall strength of this report.”

“We don't think these numbers are sustainable, and we don't think they tell the full story for the Canadian economy - but they do underscore the different policy outlooks facing the BoC and Fed. Robust labour market performance gives the BoC a cushion the Fed doesn't enjoy, and will let the BoC lag behind the Fed for a longer period than would normally be plausible.”

“We continue to look for an ease in January, predicated on a weaker global outlook.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bullish case underpinned by weekend news

The EUR/USD pair has rallied Friday to close with gains for a third consecutive week at 1.1169. There was no particular catalyst for EUR gains. ECB scheduled to meet this week, although no fireworks expected this time.


GBP/USD: Uncertainty or relief? Action granted anyway

Hopes that the UK will avoid a hard-Brexit kept the Pound rallying against all of its major rivals by the end of last week, with GBP/USD finishing it a handful of pips below the critical 1.3000 level.


USD/JPY: Corrective slide to continue on sentiment

The USD/JPY pair closed the week at around 108.40, down Friday for a third consecutive day as the American currency remained under selling pressure. USD/JPY at risk of falling further only if it breaks below 108.00.


Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more