Canada: Economy shed 52k jobs in August - TDS

The Canadian economy shed 52k jobs in August, falling well below of expectations for a 5k increase.

Key Quotes

“Wage growth decelerated, but otherwise the underlying details cushioned the blow as full-time/part-time split was favourable.”

“Taking a step back, the 3-month average pace of hiring sits at a respectable 11k, and the Bank of Canada described wage growth as moderate this week so the deceleration in average hourly wages won't come as much of a surprise.”

“The Bank of Canada will rightly look through the noise in this report and we still see an October hike as very likely.”

“FX: The clear divergence in the dual payrolls headlines led to a knee-jerk spike in USDCAD, and the stronger tone of the US report should lend some support to DXY ahead of the weekend.”