US and Canadian job reports are out and so far CAD has been the biggest winner so far. The loonie is soaring on the back of another strong increase in Canadian jobs in a month where many including me had expected a normal retrenchment. Even more impressive, full time jobs led the way and the unemployment rate fell sharply while the participation rate held steady. This suggests that the US job market recovery is finally starting to spill over into Canada. Strong employment and rallies in both the gold and WTI crude oil prices may combine to provide a tailwind for Canadian stocks today. US action has been mixed after nonfarm payrolls came in below expectations but still above 200K indicating continued momentum. US indices tried to rally but didn’t get very far and have turned downward over the last half hour. The new highs in the Dow and the S&P this week were not confirmed by the NASDAQ, the broader Russell 2000 or European indices, suggesting the bulls had a case of bad breadth. Without a positive job surprise to push them higher, US stocks appear to be slumping back in normal profit-taking against the employment news. USD is also weakening following the payrolls report which has done nothing to change expectations about US interest rate increases in either direction. All the same, traders appear to be using the essentially as expected report to take profits from yesterday’s rally and ahead of the weekend. EUR has been trying to rebound but is struggling to make much headway stalling twice just above $1.2400, while GBP also continues to struggle. Gold has taken full advantage of the USD relenting a bit to rally up through $1.250/oz, while Brent and WTI crude oil are both up moderately on the day as pressure on them eases as well. This has helped to reignite interest in resource currencies, With CAD leading the charge, AUD, NZD and NOK are also among the top performing majors today. Corporate News Walt Disney $0.89 vs street $0.88 First Solar $0.61 vs street $0.63, maintains $2.40-$2.80 FY guidance Nvidia $0.31 vs street $0.28 CSC $1.18 vs street $1.01, raises FY guidance to $445-$4.65 from $4.35-$4.55 Economic News Economic reports released overnight and this morning include: US nonfarm payrolls 214K vs street 235K previous revised up to 256K from 248K US private payrolls 209K vs street 225K US unemployment rate 5.8% vs street 5.9% US average hourly earnings 2.0% vs street 2.1% Canada employment change 43K vs street (5K) vs previous 74K Canada full time jobs 26K vs previous 69K Canada part time jobs 16K vs previous 5K Canada unemployment rate 6.5% vs street 6.9% Germany trade balance €21.9B vs street €19.0B Germany industrial prodn (0.1%) vs street (0.6%) France industrial production (0.3%) vs street (0.4%) Spain industrial output 1.0% vs street 0.7% Norway industrial production 7.7% vs previous 2.3% UK trade balance (£2.8B) vs street (£2.3B) Economic reports due later today include: FOMC members Yellen, Evans and Tarullo speaking through the day