Loonie Up as Wage Growth Surprises to Upside

Friday, June 8, 2018


Canadian employment data is sending the loonie higher this morning. Although total jobs created missed at -7.5k versus a +19.1k expectation, overall wages rose the most since April 2009 at 3.9%. The Canadian unemployment rate remained stable at 5.8%. Housing starts were also a miss at 196k versus the expected 219k. The may be significant risk as the 44th G7 meeting starts today in La Malbaie Quebec as markets will be looking for headlines on trade and relative economic policies.


Geopolitical risk seems to be causing a risk of trade buoying the USD and haven commodities. The dollar is up versus all major currencies except the loonie. The lone data release was final monthly wholesale inventories and this was a slight miss at 0.1% versus 0.0% expectation.


German economic data disappointed markets as trade balance and industrial production both missed at 19.4B and -1.0% versus expectations of 20.3B and 0.4%, respectively. French industrial production also missed at -0.5% versus 0.4%. The Euro has fallen accordingly.


Equities are marginally red this morning: the Dow down 0.15%, the S&P down 0.10%, NASDAQ down 0.19% and the TSX down 0.12%.  Crude Oil is up 0.14% this morning ($66.05) while Gold is unchanged from close 0.00% ($1,303.00).


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