CIBC Research discusses its reaction to today's Canada jobs report for the month of December.
"The route to recovery from pandemic-job losses shifted into reverse in December. The Canadian economy shed 63K jobs during the month, worse than the consensus forecast for a drop of 38K, and even below our more bearish call," CIBC notes.
"The weak jobs report, combined with the recent appreciation of the Canadian dollar, will put pressure on the Bank of Canada to ease monetary policy further. But with vaccinations underway, the central bank may choose to simply look through the current headwinds, under the assumption that brighter days are ahead," CIBC adds.