The August Canadian jobs report highlights
- Prior was -31.2K
- Unemployment rate 7.0% vs 7.0% exp
- Prior unemployment 6.9%
- Participation rate 65.5% vs 65.4% prior
- Full time jobs 52.2K vs -71.4K
- Part time jobs -26.0K vs +40.2K prior
Good report. This was as well as anyone could have hoped for. The problem is that if you take the past two months, the net is -5K jobs and -19.2K full time jobs. However, that was priced in so there are positives here. The unemployment rise is a function of higher participation.
What's worrying for CAD bulls is that the loonie couldn't rally on a 4% jump in oil yesterday. If it can't rally on a solid jobs report as well, then it's probably headed lower.
In the initial reaction, the sellers jumped on the initial drop to 1.2925 and USD/CAD is up to 1.2995 in a flash.
