Things will remain interesting for the CAD – Commerzbank

In addition to the US labour market data, the Canadian labour market data will be published at the same time. Economists at Commerzbank analyze Loonie’s outlook ahead of the employment report.

The Bank of Canada faces some tough decisions

The economists polled by Bloomberg only expect a moderate rise in new positions of 20K in September. In view of the stronger growth of the active labour force this would probably correspond to a rise in the unemployment rate.

A labour market report roughly in line with expectations should probably not yet be dramatic for the BoC.

However, if the inflation data due the week after next confirms stubborn price developments, the next rate decision is not going to be easy. That means things will remain interesting for the CAD.