Canadian Jobs Boost CAD, NFP Miss Hurts U.S. Dollar

The Canadian economy added a net 32,300 jobs in March on a seasonally adjusted basis, all of which were in the full-time category. Market expectations were for a net gain of 20,000.

  • Full Time Employment Change: +68.3k vs. -39.3k prior
  • Part Time Employment Change: -35.9k vs. +54.7k prior
  • Participation Rate: 65.5% v 65.5% prior

Canada’s was unchanged at 5.8% last month as the labor force expanded and full-time hiring surged, partially retracing steep job losses that took place in January.

The has caught a bid on the strong report, currently up +0.15% at CAD$1.2751

USD/CAD April 5-6, 2018.

USD/CAD April 5-6, 2018.

U.S. Job Growth Slows in March; Unemployment Rate Holds at +4.1%

The pace of hiring stateside slowed in March and the unemployment rate held at a 17-year low.

U.S. rose a seasonally adjusted 103,000, a sharp slowdown from February’s gain of 323,000 (revised).

The unemployment rate was a seasonally adjusted to 4.1% for the sixth consecutive month.

Figures for January and February were revised down, subtracting 50,000 jobs from the first two months of the year. The U.S. added 326,000 in February and 176,000 in January.

Note: In Q1, employers have added an average of 202,000 workers to payrolls, outpacing last year’s average growth of 182,000, per report.

A tighter labor market should also produce better wage growth, but so far that’s failed to materialize. Average hourly earnings for all private-sector workers increased +8c to +$26.82. Wages rose +2.7% y/y in March.

Stock futures have edged slightly lower after the release, while the has edged lower, down 2 bps to 2.8%, while the USD has slipped 0.2% against G7 currency pairs.

USD/JPY for April 5-6, 2018.

USD/JPY for April 5-6, 2018.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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