Canada’s Unemployment Rate Stays At 5%, USD/CAD Moves Higher

Key Insights

• Unemployment Rate settled at multi-month lows at 5%. 
• Canadian economy added 35,000 jobs in March. 
• Participation Rate declined from 65.7% to 65.6%. 

Unemployment Rate Remained Unchanged

On April 6, Canada reported that Unemployment Rate remained unchanged at 5%, compared to analyst consensus of 5.1%. Canada’s Unemployment Rate has been stuck at 5% since December 2022.

Employment Change report showed that the Canadian economy added 35,000 jobs in March, compared to anlayst consensus of 12,000. Job gains were seen in transportation and warehousing, as well as business, building, and other support services.

Participation Rate declined from 65.7% to 65.6%, while analysts expected that it would decline to 65.5%. Average Hourly Wages grew by 5.2% on a year-over-year basis.

USD/CAD Continues To Rebound After Jobs Reports

USD/CAD  continued to move higher after the release of jobs reports. Currently, USD/CAD is trying to settle above the 1.3480 level.

Traders bet that the BoC will not raise rates in 2023. While the Unemployment Rate is not rising, recession risks remain significant.

Today, traders will also focus on the dynamics of Treasury yields. The yield of 10-year Treasuries continues its attempts to settle below multi-month lows at 3.25%. A move below this level may put some pressure on USD/CAD. However, it should be noted that the U.S. Dollar Index is currently moving higher despite the pullback in Treasury yields.

For a look at all of today’s economic events, check out our economic calendar.