Canada: Market consensus is for job growth to slow to 10k - TDS

Analysts at TDS suggest that Canada’s July employment will be the highlight of the domestic calendar while international trade will give a look at growth conditions for June.

Key Quotes

“TD looks for an unchanged print on net employment while the market consensus is for job growth to slow to 10k. We expect the unemployment rate to hold at 6.5% (from 6.454%), in line with consensus, as the pickup in labour force participation over the last two months is unlikely to repeat itself. The risks around wage growth are tilted towards a pickup but any improvement should be fairly modest. Meanwhile, we look for the international trade deficit to widen to $1.40bn, a touch worse than the market consensus for $1.25bn. Both imports and exports are forecast to weaken, though a sharp decline in energy prices will help drive the latter.”