Canadian Job Data Slips, NFP Jumps

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The Canadian dollar is hovering on Monday, after ending the week on a high note. In the European session, USD / CAD is trading at 1.2079, down 0.03% on the day.

Canada and the United States both released key job names on Friday. Canada’s numbers were disappointing, while U.S. non-farm payrolls were strong, though it fell less than the consensus.

Canada’s economy is leaving jobs for a second straight month as the job market becomes more worrying. The loss of 68.0 thousand in May follows a sad April, which posted a reading of -207.1 thousand. The May edition missed the forecast of -23.5 thousand. The unemployment rate also rose higher to 8.2%, more than 8.1%.

Labor numbers south of the border were much more positive, although the data did not fully meet market expectations. Non-farm payrolls showed a solid gain of 559 thousand. This feared the consensus of 650 thousand, but nevertheless showed a strong expansion and was much higher than the previous reading of only 266 thousand. There was good news on the payroll as Average Hourly Wages rose 0.5% in May, up from 0.2%. However this missed the 0.7% consensus.

Another employment release on Friday is the U.S. NFIB survey, which indicated that openings in small companies jumped to a record high of 48%. This seems to indicate that while the economy is producing jobs, the issue is getting people out of the house and into the workforce. This issue will have to be addressed if the economic recovery is to continue rapidly.

USD / CAD Technique

marketpulse2021060761

  • On Friday, USD / CAD strongly pressed resistance at 1.2135 but could not break through. The next resistance line is at 1.2197
  • There are support lines at 1.2009 and 1.1945

Source

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