Canada’s latest employment report delivers a strong signal for forex traders monitoring the Canadian dollar and Bank of Canada policy.

The economy added 66,600 jobs, a notable increase from previous months and well above expectations. The unemployment rate dropped to 6.5%, significantly lower than the 7.0% that was forecast. Meanwhile, the participation rate fell slightly to 65.1% from 65.3%, indicating a somewhat smaller share of the working-age population is active in the labour force.

Breaking down employment figures, full-time jobs declined by 9,400, an improvement compared to the prior month’s 18,500 decrease. Part-time positions rose by 63,000, though this was below the previous gain of 85,100. Average hourly wages for permanent employees remained steady, holding at a 4.0% year-on-year increase.

After mixed reports through July to October — with two softer releases followed by two stronger ones — this latest data series firmly points to robust hiring momentum in Canada. The unemployment rate’s decline is partly influenced by the lower participation rate but still counters market expectations of a weaker labour market.

For forex traders, these figures may be a catalyst for the Canadian dollar, which is currently trading near a one-month low and close to testing the October low. The report also implies that the Bank of Canada, which had signalled a pause in monetary tightening, may soon reconsider and resume rate hikes.

Original Source: Adam Button of investinglive.com