The loonie just exploded by 100 pips following a barrage of Canadian eco data, including GDP and employment, both of which crushed expectations.
September GDP rose 0.2% ,/ vs exp. 0.1%, and up from -0.1% in August, which means Q3 annualized GDP will be 1.7%.
But it was the jobs data which was particularly noteworthy; in fact it was borderline "Australian" in how ridiculous the print was: the employment rate in November was 79.5k, up from 35.3k last month, and 8 times higher than the consensus estimate. Not only was this the highest print since 2012, it was also a 14 sigma beat!
Canada also reported a 5.9% November unemployment rate, far below the 6.2% consensus estimate; this translated into total employment +2.1% or 390K from a year earlier.
Some more labor market details:
In response to this stellar data, the USDCAD has plunged 100 pips, trading below 1.2800. With the loonie underperforming the major in recent weeks, is today's data the basis for a major reversal?