Canada's revised jobs: +20k should be rough threshold - RBC

FXStreet (Bali) - Statistics Canada will be releasing a revised July employment report this Friday, following a 'processing error', with Strategists at RBC suggesting +20k should be the rough threshold for the headline figure.

Key Quotes

"Statistics Canada will be releasing a revised July employment report tonight after acknowledging an error in last week’s release."

"All we know is that the agency made a ‘processing error’, and while that may suggest a possible issue with their seasonal adjustments, the reality is that there is no way of knowing the direction or degree of the revision."

"Nearly all forecasters have maintained their official forecasts going into the original report, and the same is true for RBC (+24k, cons. +20k)."

"In the aftermath of the announcement of the error, USD/CAD reversed its gains from the initial disappointing report, and the pair has remained better sold overnight."

"That suggests +20k should be the rough threshold for the headline figure, below which USD/CAD should rally."

"Manufacturing sales for June are also out at the same time (cons. 0.4%; RBC 0.7%), although may be overshadowed depending on the size of the employment revision."