Canadian April employment and wages data

  • Prior was +32.3K
  • Full time jobs +28.8 vs 16.8K expected (68.3K prior)
  • Part time -30.0 vs +12.0K expected (-35.9K prior)
  • Participation rate 65.4% vs 65.5% prior
  • Unemployment rate 5.8% vs 5.8% expected (5.8% prior)
  • Hourly earnings permanent employees +3.3% vs +3.2% expected (+3.1% prior)

This report is better than the headline looks. There was good growth in full time jobs and wage rose two ticks.

Still, it makes the May 30 BOC decision an even tougher call. The market was pricing in a 33% chance of a hike before the data. With these numbers, there certainly isn't anything screaming 'hike' but the wage growth is something the BOC is undoubtedly watching closely.

USD/CAD is quickly up to 1.2760 from 1.2725 on the headlines.