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16 Mar 2015
Canadian employment unchange - Nomura
FXStreet (Bali) - Charles St-Arnaud, Economist at Nomura, notes that overall, the Canadian employment report from last Friday was neutral, adding that the BoC is likely to cut rates in the coming months again.
Key Quotes
"Employment was basically flat in February, decreasing by 1.0k, very slightly better than expectations of -5k. It follows an increase of 35.4k January. The flat employment coupled with an increase in the labour force sent the unemployment rate to 6.8% from 6.6%, higher than expectation."
"Overall, the report is neutral. The decline in employment continues for a fifth consecutive months, as a result of the shock from lower commodity prices. This is being reversed by continued gains in the services sector, suggesting a lack of contagion so far to the nonresource sector. However, the continued weakness in manufacturing suggest that the weaker CAD has yet to have any impact on manufacturing and is consistent with the underperformance in non-energy exports seen since July."
"We continue to believe that the BoC is likely to cut rates in the coming months. The timing of this cut would depend on incoming data, especially the price of oil, non-energy exports, signs that the weakness is affecting regions and sectors not linked to oil production and changes in household indebtedness."
Key Quotes
"Employment was basically flat in February, decreasing by 1.0k, very slightly better than expectations of -5k. It follows an increase of 35.4k January. The flat employment coupled with an increase in the labour force sent the unemployment rate to 6.8% from 6.6%, higher than expectation."
"Overall, the report is neutral. The decline in employment continues for a fifth consecutive months, as a result of the shock from lower commodity prices. This is being reversed by continued gains in the services sector, suggesting a lack of contagion so far to the nonresource sector. However, the continued weakness in manufacturing suggest that the weaker CAD has yet to have any impact on manufacturing and is consistent with the underperformance in non-energy exports seen since July."
"We continue to believe that the BoC is likely to cut rates in the coming months. The timing of this cut would depend on incoming data, especially the price of oil, non-energy exports, signs that the weakness is affecting regions and sectors not linked to oil production and changes in household indebtedness."