Trade Desk Thoughts - Canadian Employment

Canadian Employment Change Actual 106.9K, Expected 11.0K, Previous 15.2K

Canadian Unemployment Rate Actual 6.1%, Expected 6.2%, Previous 6.1%

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 impacts, rather than just as a one-off knee-jerk reaction to these numbers printing.

Trade Desk Thoughts: Employment in Canada increased by 107,000, much more than expected. However, the large increase was due in part to part-time workers, which increased by 97,000. The unemployment rate remained stable in September, despite analysts forecasting a small increase. Over the first nine months of 2008, employment has increased 1.1% (+194,000), a slower pace of growth compared with 1.7% (+275,000) during the same period last year.

Part-time work has increased by 131,000 in 2008, nearly double the increase of full-time. This contrasts with the first nine months of last year, when gains were mostly full time. The number of private sector employees rose by 56,000 in September, with smaller gains in self-employed (+30,000) and the public sector (+21,000). Large increases in employment were seen in health care and social assistance, followed by business, building and other support services, and manufacturing

Forex Technical Reaction: The cad made a 100-pip candle at the time of the release, shedding some of the overnight gains. The pair has advanced over the last 10 consecutive days, and today is no exception. The pair has already gained 130 pips and is trading near TheLFB R1 (1.1590)

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