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.

Trade Desk Thoughts: Employment in Canada plunged by a record 129.0K, much more than expected. The unemployment rate rose to 7.2% in January, also higher than market expectations.

The loss in January follows other declines in recent months. Since October, employment has fallen by 213,000 (-1.2%), the result of full-time losses.

In January, the drop in employment was most pronounced in manufacturing, where the net loss totaled 101,000. There were declines in a number of other industries as well. The only industry with notable gains was health care and social assistance, where employment increased by 31,000.

Employment fell by 101,000 in the manufacturing sector in January. This was the largest monthly decline in the industry on record. Employment fell also in transportation and warehousing, -30,000, and in business, building and other support services declined by 22,000.

Forex Technical Reaction: The cad rose 80 pips during the release. Ahead of the labor report, the cad advanced 140 pips, even though the market moved today very cautiously.