Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Dec 02 - 10:55 AM

USD, CAD: Jobs Report In Line With Fed And BoC Hiking 50bps This Month - CIBC

By eFXdata  —  Dec 02 - 09:06 AM

CIBC Research discusses its reaction to today's US and Canada's jobs reports for the month of November.

"The Fed is looking for a cooling in the labor market in order to get inflation back to target, and the November employment data didn't deliver much on that front. Hiring was a robust 263K, above the 200K consensus expectation, even when accounting for a 23K negative revision to the prior two-month job tally. Also worrisome for the Fed was an acceleration in wage growth to 0.6% m/m (vs. 0.3% consensus), and an upward revision to the prior month (now 0.5% vs. 0.4% previously), which left the annual pace at 5.1% (vs. 4.6% consensus). There were a couple of pockets of weakness in the report, as the household survey showed a decline in employment for the second month in a row, but when combined with a drop in the participation rate, the unemployment rate was unchanged at 3.7%, as expected. Aggregate hours worked also fell by 0.2% m/m. Overall, this report is still consistent with a 50bp hike from the Fed in December," CIBC notes. 

"After a roller coaster few months, the Canadian labour market moved sideways in November. The 10.1K job gain was in line with consensus expectations, as gains in full-time jobs were almost fully offset by losses in part-time employment. Employment increased in finance, real estate and manufacturing, but fell in construction, wholesale and retail trade. The unemployment rate ticked down to 5.1% as the labour force participation dropped by one tick to 64.8%. Wage growth of permanent employees also fell by one tick to 5.4%, as expected...However, given still strong wage growth, the composition of job gains in November (mainly private sector and full-time), and the low unemployment rate, this report supports our view that the Bank of Canada will increase rates by 50 bps next week, before pausing in 2023," CIBC adds.

CIBC Research/Market Commentary


  • eFXplus
  • End-user license agreement (EULA)


  • About
  • Contact Us


  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2023 eFXdata · All Rights Reserved