The April LFS was not as downbeat as widely feared but still showed the loss of 2m jobs during the month, nearly double the previous record from March, per TD Securities. USD/CAD barely budged.
“April job losses were less severe than expected with employment falling by 2m during the month, well short of estimates (TD/market) for a 4m pullback. This pushed the unemployment rate to 13.0% while hours worked fell by another 15% m/m.”
“While the jobs data was not as bad as feared, USDCAD’s reaction has been fairly contained and will likely steady around the 1.39 lows.”
“USD/CAD remains a fade below the 1.40 mark. A close above 1.40 would put the 1.4080/4150 pivots back into view. On the downside 1.3920 and 1.3850 should be supports.”