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Canadian Job Losses Less Than Expected As Economy Shows Signs Of Stabilizing

Friday, 10 July 2009 12:07:35 GMT  |  John Rivera, Currency Analyst

The net change in Canadian employment was -7,400 which beat estimates of -35.0K, but unemployment rose to an 11 year high of 8.6%. A rise of 37.2K from -32K in self employment helped offset job losses in the goods producing and manufacturing sectors. Additionally, part-time workers rose 40.1K as companies stick their toe back into the labor market.

Fundamental Headlines

• Euro-Zone Inflation Risk May Grow – Wall Street Journal
• Retail Sales Fall – Wall Street Journal

• Call at G8 for change to reserve system – Financial Times

• Goldman Sachs Reverts to Pre-Lehman Risk Mean With Accelerating Earnings – Bloomberg

• U.S. Economy on `Cusp of Stabilization' as Growth Forecasts Are Increased  – Bloomberg

 

USDCAD – The net change in Canadian employment was -7,400 which beat estimates of -35.0K, but unemployment rose to an 11 year high of 8.6%. A rise of 37.2K from -32K in self employment helped offset job losses in the goods producing and manufacturing sectors. Additionally, part-time workers rose 40.1K as companies stick their toe back into the labor market. A 3.5% rise in annual wage growth may keep the BoC quantitative easing plans on hold as the central bank is monitoring inflation to determine whether it is appropriate to execute the additional measures.

EURUSD – French industrial production unexpectedly rose in May by 2.6% following a 1.5% decline the month prior. The automobile industry showed signs of life rising 11.6% followed by a 10.2% increase in refinery output. Italian industrial production also surprised with a flat reading surpassing estimates of a 1.1% decline. The major economies of the Euro-Zone continue to show signs of stabilizing but concerns continue to emerge regarding the impact of slumping Eastern European nations.  Discuss the topic and your trade ideas in the EUR/USD Forum.

 

GBPUSD – U.K. factory gate prices fell the most since 2001 by 1.2% which surpassed economists expectations of -0.8%. A 2.0% drop in manufacturing prices led the way and provided support for the BoE’s forecast that inflation which stands at 2.2% will fall below its 2.0% target and remain there until 2010. If we see consumer prices follow suit then the central bank may add to their quantitative efforts next month when they release the quarterly inflation report. Additionally, input prices fell 11.0% but beat estimates of -12.1% after a revised higher -8.6% the month prior. Discuss the topic and your trade ideas in the GBP/USD Forum

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