The Canadian dollar is still appreciated.

The Canadian economy remains in a good position, as evidenced by unexpectedly strong job growth in April and near-record low unemployment for the fifth consecutive month, indicating ongoing labor market resilience. Although there are some signs of economic slowing, the overall outlook remains positive.

Net employment increased by 41,400 positions in April, while the unemployment rate stood at 5.0%. Canadian statistical data demonstrates a continuous trend of labor market flexibility. Analysts surveyed by Reuters had expected a net job gain of 20,000 positions in April and a rise in the unemployment rate to 5.1%.

It is worth noting that all of the job growth last month was in part-time work, which added 47,600 net positions, offsetting a loss of 6,200 full-time jobs. This represents the largest monthly increase in part-time employment since October 2022.

Andrew Grantham, a senior economist at CIBC, said that "although the current job growth is being supported by part-time work, the labor market is tighter than expected due to the slowing economic growth."

The Bank of Canada (BoC) expects the economy to continue to grow positively, but at a slow pace in the remaining quarters of the year due to the lingering effects of past interest rate hikes. The interest rate remained unchanged in the most recent policy meeting, the second consecutive hold after eight consecutive increases.

Nathan Janzen, Senior Economist at RBC, said that "last year's significant interest rate hike is beginning to have an impact, with stricter lending conditions in the United States increasing negative risk. Therefore, with concerns about growth, the Bank of Canada has the tendency to increase interest rates further."

The average hourly wage for permanent employees increased by 5.2% from April 2565, as did the annual increase in March, according to Bank of Canada. The bank also stated that interest rates may need to remain high for some time due to tight labor market pressures and high service prices.

In the service sector, there were 35,200 new hires in April, led by wholesale and retail trade, transportation and warehousing. On the other hand, the goods-producing sector added a net of 6,300 jobs, mostly in construction.

Technical analysis data (5H)

Resistance: 1.3388, 1.3396, 1.3403

Support: 1.3373, 1.3366, 1.3358

Source: Investing.com

 

Pivot Points May 10, 2023 10:01 AM GMT+7