• Canadian Dollar trends broadly lower after brief rally.
• Canada added more jobs than expected in January.
• Canadian wage growth in January continues to ease.

The Canadian Dollar (CAD) slipped back after testing higher on Friday. Markets readjusted exposure to the US Dollar (USD) after the US Bureau of Labor Statistics (BLS) introduced broad seasonal adjustment changes to how the Consumer Price Index (CPI) is calculated, causing slight changes to near-term inflation prints.

Canadian wage figures eased further in January, and net job additions showed a higher number of job gains than markets forecast, while December’s jobs number also saw an upside revision. The Canadian Unemployment Rate also ticked lower in January.

Daily digest market movers: Canadian Dollar falling back despite economic calendar beats

• Canada’s Unemployment Rate declined to 5.7% in January versus the forecast 5.9%, December’s 5.8%.
• Net Change in Employment added 37.3K new jobs in January, handily beating the forecast of 15K.
• December’s job additions also saw an upside revision to 12.3% from 0.1K.
• Canadian Average Hourly Wages declined to 5.3% in January from the previous month’s 5.7%.
• The US BLS brought far-reaching adjustments to how the CPI is seasonally-adjusted, causing an uptick in adjusted annualized US inflation, though recent inflation measures remain largely unchanged.
• With the adjustments out of the way, markets will focus on next week’s US CPI inflation print due on Tuesday.
• Next week sees a thin, low-impact economic calendar for Canada, exposing the Loonie to broad-market flows.