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Jobs do-over does not change much for the CAD - TD Securities

FXStreet (Łódź) - The TD Securities team of economists point out that despite the upgrade of Canadian employment data last Friday, which was initially reported with an error, CAD's situation didn't change much.

Key quotes

"The economists got to take another stab at the July labour force survey last Friday and predictions still ended up missing the outcome by 20k, only this time there was a plus in front of the report instead of the originally reported negative sign."

"The do-over put the July numbers in a much better light but the underlying weaknesses evident in the initial report—the slowing trend rate of growth in jobs and the growing reliance on part-time work—remain intact."

"The July data was not the disaster that was originally reported but there is still evidence of sluggishness in these data."

"Short-term price signals suggest to us that an important low—right on the medium-term support zone defined by the 200-day MA (1.0868)—was reached Friday and that the market is trying to reverse higher again."

"There is not a lot of 'buy in' evident to that theory at present and the lack of topside movement suggests some risk still of short-term weakness."

"We spot support at 1.0850/60 now and look for the USD to pick up a bit more ground again above 1.0910/20."

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