Canadian Employment Slipped by 19k in November – December Report 2011

The Canadian labor force edged down again and the employment declined for the second straight month: according to the December 2nd report, the employment fell by 19,000 during November 2011.

 

 

 

 

 

 

 

USD to CAD Chart  Canadian Forex Exchange Rate  Canada employment rate December 2 2011

 

This decrease in employment resulted in an increase in the rate of unemployment by 0.1 percent points as it reached 7.4% (see chart below).

 

 

 

USD to CAD Chart  Canadian Forex Exchange Rate  Canada unemployment rate December 2 2011

 

 

 

This news is likely to affect forex exchange rate trading in Canada and may further pressure the USD/CAD forex exchange rate to incline throughout the day; the increase in the U.S. labor force in November may also help further drive up the USD/CAD exchange rate. Currently the US dollar to Canadian dollar is traded at 1.0163 – a 0.2388% increase as of 16:29 (GMT).

The table below presents the announcements of the Canadian labor report in 2011, and the change in Canada’s employment (column A); Canada’s unemployment rate (column C), and the daily percent change on the day the report was published for USD/CAD (column D). Column B receives the figure 1 for good news from the labor report (i.e. employment grew above 20k) and 0 for bad news (below 20k). The linear correlation of USD/CAD and Canadian labor report news presents a negative relation, i.e. as the report shows a decrease or no growth in the Canadian labor force, the USD/CAD tends to rise (the Canadian dollar depreciates against the USD).

table Canadian Labor Reports Canadian dollar to US dollar exchange rate Canada employment report December 2 2011

These correlations aren’t significant, but provide an indicator that the news on the Canadian labor force is likely to have a positive effect on the USD/CAD.

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