Candian Unemployment Unexpectedly Falls As Full-time Hires Soar

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USD/CAD – The Canadian unemployment rate unexpectedly fell in February to 8.2% from 8.3% as the economy added another 20,900 jobs. Job growth surpassed estimates of 15,500 building upon the month prior’s gain of 43,000. A surge if 17,8000 in goods producing hires paced the improvement, the sector had lost 38,000 over the precious two months. Companies are becoming more confident that the current recovery is sustainable as part-time employees were converted into full-time hires. The labor force increased for a second straight month as more Canadians look to take advantage of the improving labor conditions, which makes the drop in unemployment that more impressive. The BoC is committed to keeping interest rates on hold until June, but if higher wages may force policy makers to accelerate their timetable to prevent rising inflation. To discuss this and other topics, please visit the USD/CAD forum.

EUR/USD– European industrial output soared 1.7% in January, which was the most since record keeping began in 1990. The improvement surpassed estimates of 0.7% signaling that growth is regaining its footing after nearly stalling in the fourth quarter. Looking at the breakdown gains were led by a 2.6% improvement in Energy output followed by a 2.0% rise in consumer durable goods. The greatest contribution came from a 1.4% rise in intermediate goods which accounts for 36.2% of the gauge. However, we did see the manufacturing PMI gauge slip which could be a sign that the pace of growth isn’t sustainable. The ECB continues toi see downside risks to growth which has keep policy makers on hold. To discuss this and other topics, please visit the EUR/USD forum.