Canadian Unemployment Drops 2012.04.06

April 06, 2012 03:39

 

United States (US) initial claims for unemployment insurance came in at a seasonally adjusted 357,000 the week ending March 31st, according to the US Department of Labor. This was 6,000 lower from the previous week at 363,000, and proved better than economists’ expectations of 360,000. Initial claims are utilized to determine whether the country’s number of layoffs are increasing or decreasing. The four-week moving average which removes volatile week to week fluctuations also came in lower dropping 4,250 to 361,750 from the previous revised average off 366,000. The figure is the lowest seen since April of 2008, before the country’s recent major financial crisis. When the levels range from 3000,000 to 4000,000 the economy is usually growing at a moderate to fast rate. The seasonally adjusted insured unemployment rate tabulated at 2.6% for the week ending March 24, unchanging from the previous week’s unrevised rate.

 

 

 

In other news, Canada’s employment gained 82,000 in March bringing the unemployment rate 0.2 points lower to 7.2%, according to Statistics Canada on Thursday. Industries increasing employment included health care & social assistance adding 32,000 positions, information, culture & recreation infusing 28,000 jobs, and public administration providing 15,000 more positions. When considering 12 months back the country’s employment gained 197,000 or 1.1%.

 

In another report published by Statistics Canada, the country’s building permit values for February 2012 increased 7.5% to $6.5 billion in February 2012. Building permits indicate the level of intent for building construction. The increase was contributed by 36.2% ($2.5 billion) gains in the non-residential sector as the residential sector declined 5.3% ($3.9 billion).

The USDCAD dropped 85 pips today after the employment data was released. The pair is now trading in a range with support at 0.9888 and resistance at 0.9928. If the pair falls below support at 0.9888, we expect the pair to target 0.9850. 

 

 

Eugene Ross, Analyst

Admiral Markets

At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory

Avatar-Admirals
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.