USD/CAD: Softer US Payrolls Vs A Strong Canadian Jobs Report For March – CIBC

Where next for the Canadian dollar after good jobs report from Canada, a poor one for the US and advances on NAFTA? Is it all good for the loonie?

Here is their view, courtesy of eFXnews:

CIBC Research discusses the reactions to today’s jobs report in the US and Canada for the month of March.

US Payrolls: “It’s often hard to get a consistent message from the US employment data, and today was no exception with a weak payrolls print but fairly solid wage figure….

With the wage figures no higher than expected, markets are likely to focus more on the headline payrolls print and as such today’s data could be slightly negative for the US$ and positive for fixed income,” CIBC notes.

Canada’s Employment: “This months jobs survey showed a nice pickup in employment gains in Canada if you take these monthly reports seriously, which we always caution against. The 32K gain still left the jobs level down 40K from where it stood after an upward spike in December, but up 1.6% from a year ago. CA

Still, the contrast with a softer US payrolls report has the C$ marginally firmer after the data, and two year yields a bit higher,” CIBC adds.

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