USDCAD: Loonie cheers upbeat jobs data and prospects of opening up China's economy – TDS

Canadian employment surged 108K in October, defying expectations for a slowdown. CAD strengthened following the number and is set to remain resilient in the short-term also thanks to speculation of China re-opening, economists at TD Securities report.

Canada's random number generator strikes again

“The Canadian economy added 108K jobs in October, smashing expectations for a 10K print, following the muted performance over the last six months. Details were even more hawkish with full-time employment driving job growth, alongside a 0.2pp increase to the participation rate as wages firmed by 0.4pp.”

“The CAD caught a solid bid following the surprise, which added to the positive momentum it gained overnight following growing speculation that China will relax its zero-COVID policy. Together, we think it is a positive story for CAD, at least in the short-term.”