News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇
  • US Indices pared their earlier gains and have all fallen into the red as trading session advances. DOW -0.87% NDX -0.08% SPX -0.46% RUT -1.03% $DOW $QQQ $SPY $IWM
  • The price of gold is stuck in a small range in early turnover as traders ready themselves for a busy week of potentially market-moving data releases and events. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/cB1KKaIJfi https://t.co/6U7onHpkii
  • ECB President Lagarde: - Hope is still that 2021 is year of recovery - Euro-area growth in Q4 was negative - Recovery has been delayed but not derailed #ECB $EUR
  • #Gold fell back to around $1,850 after testing and rejecting its upper range for the last two weeks as it climbed to a morning high around $1,867. $XAU $GLD https://t.co/wPjAgcu3Vq
  • Game Stop's surge on the open seemed to knock on to TSLA with some throttling and on to FAANG members with further restraint while the Nadsdaq gapped 1.1% to the upside. NDX/SPX ratio hit a record but it all has started to ease off since the opening drive
  • Taking a look at the technicals, the outlook for EUR/GBP remains weak with last weeks brief break below key support at 0.8860 suggesting as much. Get your $GBP technical outlook from @JMcQueenFX here:https://t.co/ZQKI9t3NHt https://t.co/mOWhxiFFVE
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.12% 🇨🇦CAD: -0.05% 🇯🇵JPY: -0.08% 🇬🇧GBP: -0.18% 🇨🇭CHF: -0.42% 🇪🇺EUR: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KCr9hz3m0O
  • Italy's Conte facing calls to step down from coalition allies - BBG. $EUR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: 0.43% Wall Street: -0.29% FTSE 100: -0.51% France 40: -0.97% Germany 30: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wDJmo5eYNU
Canadian Jobs Report Beats Expectations

Canadian Jobs Report Beats Expectations

Izaac Brook,

Talking Points:

  • Employment change beats expectations by 40k jobs
  • Unemployment rate tightens to 8.5% from October’s 8.9%
  • Numbers still weak compared to earlier in the recovery
Advertisement

Canada Jobs Numbers Beat Expectations

This morning’s Canada jobs report saw employment change print at 62k vs. the forecast of 20k and the unemployment rate fall to 8.5% vs. expectations that it would steady from last month’s 8.9%. While both prints beat their forecasts, they remain some of the weakest economic numbers out of Canada since the spring.

Canadian Jobs Report Beats Expectations

Created by Izaac Brook, Source: Bloomberg

Employment Change in Canada collapsed to -2,000,000 in April during the height of pandemic lockdowns. As the Canadian economy reopened, May saw an increase of nearly 300k jobs and June saw a record increase of 952.9k jobs. July through September saw strong job growth as well.

It was not until October when the employment change report began to falter. October’s jobs printed at only 83.6k compared to September’s 378.2k. The 20k forecast for the November print further recognized the deteriorating situation in Canada’s labor market. The print of 60k strongly beat this forecast but still remains the weakest month of the Canadian economic recovery.

Canadian Jobs Report Beats Expectations

Created by Izaac Brook, Source: Bloomberg

The Canadian unemployment rate tells the same story. The rate shot up in March and April as the Canadian economy was shut down and peaked at 13.7% in May. As the economy reopened and jobs returned, the rate fell by around 1% on average each month throughout the summer, reaching 9% in September. Since then, the labor market has struggled to tighten further. October’s unemployment rate printed at 8.9%, nowhere near the decline seen in summer months. November’s forecast of 8.9% reflected the expected stagnation in the unemployment rate. The print at 8.5% is a nice surprise, but Canadian unemployment continues to remain elevated in the face of the pandemic.

Despite these better than expected prints, economic data from Canada continues to point towards a weakening economic recovery. Earlier this week, annualized Q3 GDP printed at 40.5%, missing the forecast of 47.6%. COVID cases have risen sharply in Canada since September, forcing the government to reinstate certain lockdown policies. A new stimulus package of C$100 billion is expected soon, but the Canadian economy will continue to struggle under COVID is contained.

Forex for Beginners
Forex for Beginners
Recommended by Izaac Brook
Forex for Beginners
Get My Guide

Compared to disappointing forecast misses in American job data, the Canadian releases are a welcome surprise. USD/CAD fell following the release as the Canadian Dollar strengthened against the US Dollar. Since March, CAD has grown stronger against the USD as the Dollar continues its downward trend.

USD/CAD 1 Minute Chart

Canadian Jobs Report Beats Expectations

Chart prepared by Izaac Brook; USD/CAD on Tradingview

--- Written by Izaac Brook, Intern for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES