CAD weakens as Canada jobs disappoint again
The loonie has come under heavy pressure this morning after being shot down by a weaker than expected Canadian jobs report. Last month, Canada lost 9K jobs, way less than the 20K increase that had been widely expected, while the unemployment rate rose to 7.1% from 7.0%.
Canadian results appear particularly poor in comparison with the strong job prints out of the US last week. The one saving grace for Canada was that full-time positions rebounded by 33K offsetting the previous month’s 29K loss. Overall, it still appears that the Canadian job market is spinning its wheels which may keep the Bank of Canada in neutral longer and limit the upside for CAD.
Elsewhere, we find indices in Europe and Australia have bounced back a bit overnight while the US appears to be heading for a higher open. There hasn’t been any news to change attitudes overnight so this may just be short covering ahead of the weekend.
Next week earnings reports go from a trickle to a deluge which should give us a better indication of whether earnings will be able to keep up with recent stock price increases and meet or beat higher expectations. The market reaction to earnings should also indicate if traders are looking for reasons to continue the party or for reasons to head for the exit.
Wells Fargo $1.01 as expected
Economic reports released overnight and this morning include:
Canada employment change (9K) vs street 20K vs previous 25K
Canada full-time jobs 33K vs previous (29K)
Canada part-time jobs (43K) vs previous 55K
Canada unemployment rate 7.1% vs street 7.0%
Germany consumer prices 1.0% as expected
Spain consumer prices 0.1% as expected
UK construction output 3.5% vs street 5.6%
India industrial production 4.7% vs street 3.5%
NZ food prices 1.4% vs previous 0.6%
Economic reports due later today include:
FOMC members Evans, Lockhart and Plosser speak during the day