Weekly Economic Update

For the week of December 10 – 14

Employment figures crushed expectations in Canada for the month of November. The country added 94.1K new positions against expectations of a mere 10K. This position increase is the largest one month gain since 1976. Digging further into this release unveils another positive fact which is that of the 94.1K positions, 89.9K of them were the more desirable full-time positions. The posting shows resilience in the job market despite the headwinds stemming from an oil crisis. One darker spot of note is wage inflation which fell to a level of 1.5 percent, down from 1.9 percent in the previous month and short of the expected 1.8 percent. The unemployment rate fell to 5.6 percent from 5.8 percent in the prior reading.

Nonfarm payrolls in the United States missed expectations for November with only 155K new positions created, shy of the 198K expected. Average hourly earnings missed expectations slightly on a month-over-month basis at 0.2 percent, but are still in line with the 3.1 percent year-over-year growth that was expected. The unemployment rate in the US remained unchanged at 3.7 percent.

It is shaping up to be a quiet week for data released out of Canada this week with the only potentially market-moving data coming from housing starts and building permits this morning. November’s housing starts are following a posting of 205.9K a month prior. In terms of October’s building permits, today’s reading is following growth of 0.4 percent in September. Data releases will be a bit more exciting out of the United States this week, with releases expected for consumer prices, retail sales and market US manufacturing PMI among others.

The Canadian dollar is currently trading slightly up against the US dollar after a large spike on Friday from stronger than expected jobs data. Todays expected range is 1.3264 – 1.3364.

Source: Bloomberg

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