Strong Canadian employment data should give the CAD a lift – Scotiabank

USD/CAD pushed through the low 1.33 zone on Thursday. Economists at Scotiabank analyze Loonie's outlook ahead of employment data. 

Strong data should bolster the case for another rate hike from the BoC

Canadian jobs data are expected to rebound in June after the softer May report. The street is looking for a 20K gain while Scotia anticipates a 40K rise. Wage growth is expected to slow (4.6%) but remains at levels that are a clear impediment to the BoC achieving its inflation goal. Hours worked data will shed a little more light on evolving growth trends for Q2 which appear to outperform the BoC’s expectations. 

Strong data should bolster the case for another rate hike from the BoC, though perhaps not as soon as next week, and give the CAD a lift.

See – Canada Employment Preview: Banks expect to see early cracks in the labour market