MRG MEGA BERJANGKA
ALMOST PERFECT

Canadian Dollar Tumbles on Severely Disappointing Employment Data

Posted By : MRG Mega Berjangka, May 09, 2014 – 20:17

Talking Points:

Canada Employment Change severely disappoints expectations
Labor force participation at a 12-year low
USD/CAD rallies to a 3-day high

Want to trade with proprietary strategies developed by FXCM? Find out how here.

Canadian Employment Data for April	Actual	Expected	Prior
Net Change in Employment	-28.9K	13.5K	42.9K
Unemployment Rate	6.9%	6.9%	6.9%
Participation Rate	66.1%	66.3%	66.2%
Full-Time Employment Change	-30.9K		12.8K
Part-Time Employment Change	2.0K		30.1K

The Canadian Dollar declined sixty pips against the US Dollar, as the net change in employment in April severely disappointed expectations and the labor market participation rate fell to a 12-year low. Statics Canada also reported on Friday morning that the unemployment rate remained at the 5-year low of 6.9%.

In April, the Bank of Canada sounded neutral on the next direction of a rate move, despite cutting its growth target for 2014 and conceding to below target inflation until 2016. The BoC reiterated in April that future policy depends on incoming data; therefore, disappointing employment data could push the central bank to adopt more accommodative monetary policy, which would be bearish for the Canadian Dollar.

USD/CAD 1-Minute: May 9, 2014