Jobs Day | BOC Contemplates Quickened Pace to Rates
Published September 7, 2018
US payrolls data will be released this morning with the expectation for employers to have added 191,000 new positions in August, pushing the unemployment rate down to 3.8%. The data is also expected to show average hourly earnings holding steady at 2.7%.
The deadline for public consultation on President Trump’s implementation of tariffs on $200 billion of Chinese goods lapsed yesterday, leaving Trump free to implement the measure at his discretion. Various industry leaders have sent letters to US Trade Representative Robert Lighthizer ahead of the deadline urging the administration to avoid imposing new duties.
The pressure to strike a NAFTA deal that includes Canada continues, as the next notable deadline comes at the end of the month. The US would need to publish the text of the agreement prior to Mexico’s presidential election on December 1. Democrats have said that they would strongly consider rejecting a trade deal that didn’t include Canada.
The loonie is rising this morning as markets are responding to statements suggesting the Bank of Canada has contemplated quickening the pace of interest rate hikes. This jump comes as Canadian labour market statistics are due for release. The expectations indicate that Canadian jobs grew by 5,100 during August, down from 54,100 back in July. The unemployment rate is expected to edge higher from 5.8% to 5.9%.