Canadian job growth likely to have slowed in June

Canada’s job growth is likely to have decelerated in June. According to a TD Economics research report, the job growth is likely to have decelerated to 5k pace in June following the robust rise of 55k in May. Details are likely to add a downbeat tone to the report as a partial reversal of the last month’s rotation into full time and private sector hiring is expected to be seen.

Manufacturing employment is likely to have eased after surging 25k jobs in May, its strongest month since 2002. Finance, insurance and real estate employment is expected to have stayed soft amidst a slowdown in the Toronto housing market. The jobless rate is expected to have remained stable at 6 percent; however, the risks are titled to drift lower to 6.5 percent on a moderation in the labor force growth, added TD Economics.

“While we look for a number of sharp improvements in April’s report to unwind partially, we expect policy makers to look through the weakness in any single month and focus on the encouraging trend that has solidified over the last six months, although the market reaction could be higher than normal, especially if we get a miss, given the current speculations surrounding an upcoming rate hike”, stated TD Economics.

At 22:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -102.758, while the FxWirePro's Hourly Strength Index of Canadian Dollar was bullish at 74.2505. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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