Canadian Employment Slightly Rose by 18k in December – January Report 2012

The Canadian labor force edged up but the unemployment slightly increased : according to the January 5th report, the employment grew by 18,000 during December 2011.

 

 

 

 

 

 

USD to CAD Chart  Canadian Forex Exchange Rate  Canada employment rate January 5 2012

Despite the increase in employment the rate of unemployment slightly increased by 0.1 percent points as it reached 7.5% (see chart below).

This news is likely to affect forex exchange rate trading in Canada and may further pressure the USD/CAD forex exchange rate to increase throughout the day; the sharp increase in the U.S. labor force in December may also help further drive up the USD/CAD exchange rate. Currently the US dollar to Canadian dollar is traded at 1.0231 – a 0.33% increase as of 16:51 (GMT).

The table below presents the announcements of the Canadian labor report in 2011-2012, and the change in Canada’s employment (column A); Canada’s unemployment rate (column B), and the daily percent change on the day the report was published for USD/CAD (column D). The linear correlation of USD/CAD and Canadian labor report news is strong and negative (but not significant), i.e. as the report shows an increase in the Canadian labor force, the USD/CAD tends to decline (the Canadian dollar appreciates against the USD).

table Canadian Labor Reports Canadian dollar to US dollar exchange rate Canada employment report January 5 2012

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.

USD to CAD Chart  Canadian Forex Exchange Rate  Canada unemployment rate January 5 2012

 

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