Loonie soars on jobs galore
FX Trader, Loonieviews.net
Summary: Today's Canadian jobs print was a blockbuster, with 106,500 new positions added in April – the largest employment rise in the country's history.
The Canadian economy has created an average of 55,400 jobs since the start of the year. Today’s data add much-needed support to Bank of Canada forecasts predicting a rebound in the domestic economy in H2'19.
The US dollar has been on the defensive since the New York open and today’s mildly disappointing US inflation numbers didn’t help matters. Headline April CPI rose 0.3% rather than the 0.4% predicted while Core CPI rose just 0.1% (forecast 0.2% ) Today’s data ensured the Federal Reserve would have a comfortable seat on the sidelines.
The inflation data didn’t do much to bolster Wall Street’s confidence. The three major indices are lower in early trading and in the absence of news of a US/China trade deal today, will likely finish the week with losses.
Traders are focused on the US/China trade talks with many believing enough progress will be made to allow Trump to cancel the tariff hike. China seems to be in that camp as it hasn’t announced any retaliatory measures.