US Job Numbers Disappoint; USD/CAD Reacts to Oil Prices and Trade Balances

• US Non-Farm Employment missed expectations as the US economy added only 138,000 jobs, versus an expected 185,000; jobs gains occurred in the health care and mining sectors of the US
• The US unemployment rate dropped to 4.3%, its lowest rate since May 2001; US month-on-month average hourly earnings were steady at 0.2%
• Despite these mixed results, the Federal Reserve is still widely expected to raise interest rates next month at their June meeting; analysts now focus on Fed comments going forward for a potential third rate hike later this year
• The Canadian trade balance came in at -0.37B versus an expectation of -0.07B; the US trade balance dropped to -47.6B versus an expectation of -45.5B
• Oil prices are enduring sharp losses this morning as prices for WTI and Brent Crude have already fallen over 2%; OPEC will not meet again until November 2017 and there is little news that the group will attempt to counter these dramatic price drops
• US President Donald Trump’s decision to exit the Paris climate change agreement has spurred speculation of increased oil drilling activity in the US, adding to worries over the global supply glut
• A Reuters survey also revealed that oil output from OPEC member states rose last month due to increased oil production from Libya and Nigeria; price gains from compliance in the OPEC deal were stifled as both these OPEC members are exempt from the supply cut