Possible CAD losses to be limited on weak labour market report – Commerzbank

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Market attention is likely to focus on today’s Canadian labour market report for March. Economists at Commerzbank analyze how employment figures could impact the Loonie.

“The market does not seem to expect further BoC rate hikes. Quite the opposite, the OIS rate expectations signal that rate cuts are being priced in as early as the second half of the year. A weak labour market report would confirm this view so that possible CAD losses are likely to be limited in this case.”

“If today’s data provides a mixed picture or if it points towards further labour shortages as well as the risk of rising wage pressure this is likely to dampen the expectation of imminent rate cuts. At the same time, it would ease possible concerns about a hard landing of the economy, so that the Loonie should be able to benefit.”

See – Canadian Jobs Preview: Forecasts from four major banks, employment may suffer a bit of retreat

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