For the week of November 5 – 9, 2018
Employment in Canada missed expectations on a headline basis for October, adding 11.2K positions instead of the 15.0K that was expected. However, details of the release are stronger, with full-time positions actually increasing by 33.9K while part-time positions fell. Hourly earnings growth dropped significantly to 1.9 percent for the month against expectations for 2.3 percent. This marks the fifth month in a row where wage growth has slowed. Canada’s unemployment rate dropped to 5.8 percent due mostly to a shrinking labor force.
In the United States, nonfarm payrolls jumped by 250K in October, a significant beat over the 200K expected for the month. Some of the month’s strength is being attributed to a sort-of recovery from September’s figures which were adversely affected by Hurricane Florence. The unemployment rate in the United States remained unchanged at 3.7 percent.
It is going to be a quiet week for data in Canada, with the only notable release coming in the form of building permits and housing starts on Monday and Wednesday. In the United States, we will see releases for PPI final demand and wholesale inventories along with a Fed policy meeting on Thursday. As of now, the Fed is generally not expected to increase interest rates at this weeks meeting.
The Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.3048 – 1.3148.