THE TAKEAWAY: [Canada’s new jobs jumped; Canada’s unemployment rate fell] > [Continued job growth add business confidence] > [USD/CAD Weakened]
Canadian employers continued to add new jobs to the labor market, rising almost six times faster than economists forecast in November as full-time and private-sector work increased significantly. Statistics Canada released a report today that showed 59,300 new jobs added in November, following gains of 1,800 jobs in October. The median forecast according to economists surveyed by Bloomberg News had called for a rise of 10,000 new jobs. As the same time, Canada’s jobless rate dropped to 7.2 percent from 7.4 percent, the first decline in five months.
Job growth was led by increase in full-time and private-sector work. Statistics Canada said full-time employment rose by 55,200 in November and private companies added 48,200 jobs. Today’s figures provide an improved outlook for the region as business confidence is likely to continue in the following periods.
USD/CAD 1-minute Chart: December 7, 2012
The loonie soared against the greenback to the month high in the minutes following data release. As can be seen from the one-minute chart, the USD/CAD pair dropped to C$0.9889 from C$0.9921. At the time of this report written, the USD/CAD pair was trading at C$0.9803.
--- Written by Renee Mu, DailyFX Research