Canadian job growth likely to have picked up in November on further rise in services sector

Canadian November employment data is set to release tomorrow. According to a TD Economics research report, job growth in Canada is expected to have risen by 25k, driven by further gains in the services sector.

Employment in goods producing industries might see a drag from oil and gas, where the blowout in WCS spreads has led companies to shut-in production, although this should be countered by hiring elsewhere in the goods sector.

“Job growth of 25k will allow the unemployment rate to edge lower to 5.7 percent although wage growth will paint a more downbeat picture, with average hourly earnings forecast to slip to 1.8 percent y/y”, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -88.3976, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 21.9404. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex