It’s good news for Canadians as 69,900 new jobs were added to Canadian rolls and sliced the unemployment rate in the country to 7.1% down in September from the previously reported 7.3% in August. The increase far exceeded forecasts of 10,000 new jobs by economists in a Reuters survey. September saw 63,800 full-time additions, while part-time employment declined by 2,900.
Canada’s unemployment rate is the lowest since December 2008. The data tempered market expectations of a rate cut by the Bank of Canada as it signals an economy still humming despite dire news out of Europe. `I think it weighs against possible rate cuts. The Bank of Canada is probably more convinced the economy is picking up and doesn’t require further stimulus,” said Sal Guatieri at BMO Capital Markets.
According to Michael Conlon of ForexNews.com, one of the dynamics of the Canadian economy is that it is closely linked to the US economy as we are the largest importer of Canadian goods and services. The overall mood and feeling in the markets is that the US economy has been teetering near recession so this was seen as bad for Canada as well. However, this number shows that perhaps there is more life in both economies than had been previously thought.
The Canadian dollar climbed to a session high C$1.0332 to the U.S. dollar, or 96.81 U.S. cents, immediately after the data was released, up from Thursday’s North American session close at C$1.0378 to the U.S. dollar, or 96.36 U.S. cents.