Canadian employment growth likely to have eased in May

Canadian employment data for the month of May is set to release this week. According to a TD Economics research report, the labor market is expected to disappoint in the month with employment falling 5k, which should push the jobless rate to 5.8 percent, while wages should ease to 2.5 percent year-on-year on a sizeable base-effect from May 2018.

The volatility of the LFS makes it difficult to accurately predict the timing of any pullback, but the risks are viewed as disproportionately tilted towards a weak print.

“Any giveback should be led by the goods-producing sector, with manufacturing in the spotlight after adding 10k jobs over March/April as PMIs dipped into contractionary territory. However, segments of the service-producing sector also appear vulnerable with wholesale/retail trade employment rising by 4.8% (annualized) over the last six months”, added TD Economics.

At 13:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 8.45144 while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -60.9717 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex