Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Canadian Dollar Flies on Superb Jobs Report

By MarketPulse (Kenny Fisher)CurrenciesJan 09, 2023 04:44AM ET
www.investing.com/analysis/canadian-dollar-flies-on-superb-jobs-report-200634150
Canadian Dollar Flies on Superb Jobs Report
By MarketPulse (Kenny Fisher)   |  Jan 09, 2023 04:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar extended its gains on Monday, climbing close to 1% on Friday. In the European session, USD/CAD is trading at 1.3396, down 0.35%.

Canada Creates Over 100K Jobs

The final employment report of 2022 was a winner. The Canadian economy was surprised with a massive gain of 104,000 jobs, crushing the estimate of 8,000 and up from the November reading of 10,100. The unemployment rate ticked lower to 5.0%, below the estimate of 5.2% and the prior read of 5.1%. The Canadian dollar surged on the strong employment report and mixed US numbers, as the nonfarm payrolls were decent, but wages and the Services PMI were soft.

Canada’s superb job numbers could play a key factor in the Bank of Canada’s rate decision on Jan. 25, as a 25-basis point increase appears more likely. The markets have priced in a 75% likelihood of a 25 bp move, up from 64% before the release. Three of Canada’s major banks also expect a 25-bp increase, which would bring the cash rate to 4.5%. There are two key events next week that could provide clues on what the BoC has planned at its next meeting – the BoC Business Outlook Survey and the December inflation report. BoC Governor Macklem has said that future rate hikes will be data-dependent, and the central bank and investors will closely watch the inflation release.

In the US, nonfarm payrolls came in at 223,000, down from 256,000 but above the estimate of 203,000. This was a decent release, but investors focussed on the bad news. Average hourly earnings rose 4.6%, well off the 5.0% estimate and shy of the prior reading of 4.8%. Also, the ISM Services PMI fell into contraction territory for the first time since May 2020.

The index slipped to 49.6, down sharply from 56.5 and the forecast of 55.5. A reading below the 50.0 threshold separates contraction from expansion. The drop in wages and weak services data indicate that the US economy is slowing and is likely to tip into recession. This could force the Fed to ease up on its pace of rate hikes, and as a result, the US dollar was broadly lower on Friday.

USD/CAD Daily Chart
USD/CAD Daily Chart

USD/CAD Technical

  • There is resistance at 1.3522 and 1.3609
  • 1.3358 and 1.3271 provide support

Original Post

Canadian Dollar Flies on Superb Jobs Report
 

Related Articles

Canadian Dollar Flies on Superb Jobs Report

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Biniam Sbhat
Biniam Sbhat Jan 09, 2023 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
whats the best investment plan on calgary that going on in this 2023
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email