Canadian Dollar Surges After March Employment Improved The Most In 3 Years

By Trang Nguyen,

THETAKEAWAY: Canada Net Change inEmployment was 82.3 Thousand inMarch, Unemployment Rate Falls to 7.2 Percent> Employment growthaccelerates as Full-time WorkSurges > CAD S trengthens vs.Most of its Major Peers

The labor force report issued by Statics Canada today draws a rosy picture about Canadian economic prospects as March employment unexpectedly grew the most since 2008, mostly in full-time work. The economy surprisingly added 82.3 thousand jobs last month, after slashing 2.8 thousand in February. The reading was well above consensus forecast as twenty-four economists surveyed by Bloomberg News called for a modest gain of 10.5 thousand. From a year earlier, employment edged up 1.1 percent.

The improvement in March labor market situation was mainly attributable to growth in full-time employment which was up 181 thousand (+1.3%) while part-time employment increased. New hires were notably rose among private sector, and increased in public sector and the self-employed. Regarding to sectors, health care and social assistance, information, culture and creation and public administration reported substantial employment gains. In contrast, educational services registered employment loss.

As a consequence of 82.3 thousand jobs created in the month, unemployment rate for Mach falls to 7.2 percent, the lowest level since September 2011.

USD CAD 1-minute Chart: April 05 ,2012

Chart createdusing Strategy Trader – Preparedby Trang Nguyen

Following the stronger-than-expected employment report, the Canadian currency jumped versus most of its major peers to reverse earlier losses. As seen on the 1-minute USDCAD chart above, the Canadian dollar strengthened approximately 65 pips against the greenback from 0.9985 to 0.9920 in twenty-five minutes. At the time this report was written, a U.S. dollar trades at $C0.99344.

--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com

To contact Trang, email tnguyen@dailyfx.com
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/05/040512_Canadian_Unemployment_Rate_March.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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