Canada Net Change in Employment Preview: USD/CAD looks to the US rather than Canada

Canada stands to have forfeited a fifth of its employment in one month as the full impact of the coronavirus economic shutdown took effect in April, FXStreet’s analyst Joseph Trevisani briefs.

Key quotes

“The employment change report from Statistics Canada is forecast to show that 4 million workers lost their jobs last month, one-fifth of the nation’s workforce. Estimates from the Reuters survey of economists range from -199,600 to- 5,547,000.”

“The unemployment rate is predicted to more than double to 18% from 8.2% in March. In February the rate was 5.6%.”  

“The US and Canadian job data for April will be uniformly bad but the impact on the USD/CAD will be determined by the US report and its weight on Treasury yields.”