Canadian jobs grow by a whopping 66k but unemployment rate rises
The CAD has reacted to the headline gains in jobs, which rose by 66.8k in Jan and was evenly split between full and part-time positions. Expectations were for a modest 8k rise, so this is some beat, so we now wait to see whether the CAD can really build on these domestic results or if global concerns will outweigh.
We did, however, see the unemployment rate tick up to 5.8% however, though this was also in line with a marginally higher participation rate which moved up from 65.4% to 65.6%. Nevertheless, the overall data points to a healthy economy on the jobs front, but as we have seen with the Australian economy and the AUD, this does not always prove to be majorly currency supportive.
As USD/CAD was testing the 1.3325-30 region this morning but slipped back to the figure level ahead of the data release, and in the aftermath, we have seen a sharp move down to 1.3235 before leveling off. We note some intraday support here which has duly stalled the move lower.
Strong gains seen in the crosses also, where EUR/CAD is now eyeing a move on 1.5000 and GBP/CAD is back under 1.7200.
Ahead of the jobs report, we got more good news out of Canada in the form of Jan housing starts, which grew by a higher than expected 208k - vs 205k. It should be a good day for the CAD unless stocks (and Oil) fall out of bed.