US Job Numbers Disappoint; USD/CAD Reacts to Oil Prices and Trade Balances
Published June 2, 2017
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
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