On Friday, Canada released the employment numbers for October. The numbers disappointed with the employment change being 11.2K. This was lower than the 12.7K that traders had expected. It was also lower than the September’s change of 63K. In the previous month, Canada had lost 51K jobs.
At the same time, the participation rate declined to 65.2%, which was lower than the previous month’s 65.4%. On a positive note, the unemployment rate declined to 5.8%, which was better than the 5.9% that traders were expecting.
The Canadian economy has been strong in the past few weeks after the Trump administration accepted a deal which will be known as USMCA. This brought relief to investors who were afraid that a deal would not be reached.
The new unemployment rate data led to a decline in the USD/CAD pair, which reached an intraday low of 1.3050. Today, the pair moved slightly higher when it reached at the 1.3070. This was along the 30 and 15-day moving average. There is a likelihood that the pair will continue moving higher ahead of the important decision by the Federal Reserve this week.
This will also depend on the statement today by the BOC chair Poloz and the economic data expected from Canada this week. This includes the PPI numbers which are expected on Wednesday this week.
