Canadian Dollar Traders Unimpressed by a Spike in Part-Time Employment
- Canadian employment rises by 21.6 thousand jobs in November
- Job gains made up almost entirely of part-time positions
- GBP/CAD swings higher and lower following the release
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Canadian employment has risen for the fourth consecutive month in November, but an overwhelming majority of the jobs added were part-time positions.
Net change in employment rose by 21.6 thousand workers in November, beating expectations for 12 thousand additional jobs and improved from 13.2 thousand prior. The unemployment rate remained at the 5-year low 6.9%, as was expected. The labor participation rate remained at 66.4%.
Despite the seemingly strong employment numbers, 20 thousand of the 21.6 thousand jobs added were part time. In November, BoC Governor Poloz mentioned the significant slack in the economy, and he said that current stimulus remains appropriate.
The part-time jobs gains may be the reason that the Canadian Dollar reaction was muted, especially in the bigger environment of the US payroll numbers affecting global risk trends. Looking at Loonie trading against the Pound, the pair set a new daily low and daily high following the release, probably more reflecting a reaction to the US data. The weekly GBP/CAD low set yesterday at 1.7326 may provide support.
GBP/CAD 1-Minute: December 6, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.