Strong Job Creation, But Disappointing Earnings Growth

Canada, on the other hand, reported disappointing trade and jobs data, but not sufficiently so to change the outlook for a Bank of Canada rate hike next week. The trade deficit was slightly wider than expected (C$2.8 bln vs. median forecast for C$2.2 bln and C$1.9 bln in April). Overall job growth of 31k would appear to be constructive, but the composition favored part-time positions. Full-time jobs rose a little more than 9k while economists were expecting closer to 30k. Average earnings of permanent employees slowed more than expected (3.5% from 3.9%). The participation rate increased to 65.5% from 65.3%, which, as in the US, accounted for the rise in the unemployment rate (6.0% from 5.8%).   

The US dollar and interest rates eased after the data. The Canadian dollar lagged. Of note, the euro is trading at new three-week highs, reaching almost $1.1765. The dollar initially eased to JPY110.45. The week's low is just below JPY110.30. Sterling approached yesterday's high before stalling. It remains vulnerable to Brexit headlines today.  

1 2
View single page >> |

Read more by Marc on his site Marc to Market.

Disclaimer: Opinions expressed are solely of the author’s, based on current ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.