Canada gains only 3.2K jobs but unemployment falls to 6.5%

Disappointing Canadian jobs report for a change: only 3.2K jobs gained after 19.4K beforehand. The unemployment rate is down from 6.7% to 6.5% but the good news is fueled by a drop in the participation rate from 65.9% to 65.6%, so basically this drop is not such great news.

USD/CAD is mixed and trading around the same levels of 1.3770. In the US, the economy gained 211K jobs but wage growth slowed to 2.5%[1]. This means there is more slack in the US economy. The two reports balance out each other.

Canada was expected to report a gain of 10K jobs in April after 19.4K in March[2]. The unemployment rate was expected to remain unchanged at 6.7%. The previous participation rate was 65.9%.

USD/CAD traded under the resistance line of 1.38. The pair was rejected this high level as oil prices stabilized. However, the bigger picture is a severe downfall. The price of the black gold collapsed. WTI Crude broke below support at $47 and Brent slipped below $50.

At the same time, the US is releasing its own jobs report, the Non-Farm Payrolls, triggering significant volatility in USD/CAD.

Recent jobs reports from Canada have been positive, beating expectations.

More: Oil slips, but CAD stays put – what’s next?[3]

Get the 5 most predictable currency pairs[4]

from Forex Crunch

from Online Forex Trading Resource
View thesource article here


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