Canadian employment fell 71k in November, a larger drop than expected (median -10.0k) following a 10k gain. Declines were broad based as service sector jobs fell 38k while goods sector jobs fell 33k. Manufacturing employment dropped 38k. Full time jobs shrank 32k while part time employment fell 38k. The unemployment rate rose 0.1% to 4.3%, matching expectations (median 4.3%). Overall, the decline in jobs further cement expectations for a contraction in GDP during Q4 and underpins projections for more BoC easing in early 2009.
Meanwhile, the USD/CAD has made further advances following the worse than forecast Canadian employment report, so far spiking toward 1,2880 from 1.2440. The pairing had been run up about a big figure in London ahead of the report, as talk of a worse outcome circulated. Given the advances see ahead of the data. a sell-the-fact response may be in the card near term.
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