Canadian Employment Change Actual -61.3K, Expected -50.2K, Previous -82.6K
Canadian Unemployment Rate Actual 8.0%, Expected 8.0%, Previous 7.7%
Release Explanation: The release measures the number of jobs created, or the percentage of employed/unemployed in the labor market. “A currency will strengthen or weaken in-line with the other releases that the Employment Data influences, rather than just as a one-off knee-jerk reaction to these numbers printing” TheLFB-Forex.com Trade Desk said.
TheLFB-Forex.com Trade Desk Thoughts: Employment declined by 61,000 in March, all in full-time work. This decrease pushed the unemployment rate up 0.3 percentage points to 8.0%, the highest rate in seven years. Since peaking in October 2008, employment has fallen each month, with net losses totaling 357,000 (-2.1%). In percentage terms, this is the largest decline over a five-month period since the 1982 recession.
TheLFB-Forex.com Trade Team notes that the Canadian labor market is following the same route as the U.S. and the European labor markets. For now, the government hands are tied since there is little the authorities can do to reverse the rising unemployment trend. Additionally, this seems to be a global trend, rather than a local one.
Forex Technical Reaction: The cad had an overall weak reaction to the news, dropping 30 pips after the release but recovering rather quickly and is currently unchanged. The pair remains below the 100 day simple moving average on the daily chart.