The unemployment rate in Canada has risen to 6.8%, a jump of 0.2% from 6.6% and worse than 6.7% expected. The numbers of employed dropped by 1K, slightly better than a slide of 3.5K predicted.
USD/CAD sliding, perhaps on the US numbers.
At the same time, US producer prices badly disappointed with both headline and core numbers falling 0.5% m/m. Also on a yearly basis, PPI dropped 0.6% and core PPI rose only 1%. Both are significantly below predictions.
The internal numbers look better: full time employment is up 34K and part time jobs are down 34.9K. The fall in the unemployment rate is due to a rise in the participation rate: from 65.7% to 65.8%.
So, much better data within than the original headline.
Canada was expected to report a small loss of 3.5K jobs in February, following an impressive gain of 35.4K in January. The unemployment rate was expected to rise from 6.6% to 6.7%.
USD/CAD was trading just under 1.2750 towards the publication.
The pair moved back up in a fresh wave of USD strength, after the greenback took a break. The weak oil prices weigh on the loonie.
USD/CAD previously formed a double top.
At the same time, the US released producer prices numbers for February, which were expected to move only marginally higher, so the reaction in USD/CAD is not fully due to the Canadian date, but the labor market figures carry more weight.
