Canada: Recent soft patch in the labour market should turn out to be transient – NFB

Matías Salord FXStreet

Employment reports in Canada and in the US came in worst than expectations. According to analysts at the National Bank of Canada, the Canadian job market recovery was temporarily halted and strong economic growth will support hiring in the coming quarters.

Key Quotes:

“With a third wave of new COVID cases, Canada also witnessed a third wave of weakness in the labour market with a sizable employment decline in April. That said, most of these losses (-184K) can be attributed to the industries that have been the most negatively hit by public health measures since the start of the pandemic.”

“While significant restrictions are still in place in May (a rebound as soon as next month LFS is out of the cards), we expect a gradual easing in the coming weeks with the advance of vaccination, meaning that employment could rebound strongly during the summer.”

“We continue to think that the recent soft patch in the Canadian labour market should turn out to be transient as strong economic growth in the coming quarters will continue to support hiring. Recall that the Bank of Canada’s latest Business Outlook Survey shows hiring intentions being the most favourable in almost three years.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD edges lower due to safe-haven demand

GBP/USD inches lower after opening at a bullish gap, trading around 1.3200 during the Asian hours on Monday. The pair loses ground as the Pound Sterling declines against the US Dollar amid emerging safe-haven demand, which could be attributed to the United States-Iran talks uncertainty.

EUR/USD remains stronger despite uncertainty surrounding US-Iran talks

EUR/USD pair maintains its upward momentum for a third consecutive session, trading near 1.1390 during Monday's Asian hours. Despite this positive streak, the Euro’s gains could face headwinds if geopolitical uncertainty sparks a flight to safety, boosting the US Dollar.

Gold falls to near $4,050 amid US- Iran talks uncertainty

Gold price attracts some sellers to around $4,060 during the Asian trading hours on Monday. The precious metal declines amid uncertainty surrounding US-Iran talks and hawkish Federal Reserve expectations. The US Nonfarm Payrolls data will take center stage later on Thursday.

Week ahead: NFP report to challenge Dollar strength and the hawkish Fed

The end of the Middle East conflict and the steps made so far towards securing a comprehensive deal over the next five weeks – with oil prices dropping aggressively but maintaining a small risk premium – has allowed investors to focus elsewhere. Contrary to expectations, the greenback has been the main protagonist lately.

Middle East War updates: US, Iran appear to be returning to talks to end the war

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.