Market Wire, North America

The US job creation engine slowed in February, and revisions subtracted heavily from the prior two months – but still managed to generate far more jobs than expected. According to data released by the Bureau of Labor Statistics this morning, 275,000 jobs were added, but the unemployment rate climbed to 3.9 percent as the labour force expanded, and average hourly earnings rose 0.1 percent month-over-month, missing market expectations. Ahead of the release, consensus estimates had pointed to a 200,000-job gain, the unemployment rate was seen holding steady at 3.7 percent, and earnings were expected to rise 0.2 percent.  Revisions subtracted...

As had been almost universally-expected, the Bank of Canada left its benchmark overnight rate unchanged this morning, but language in Governor Macklem’s statement tilted in a slightly more hawkish direction than market participants had anticipated, helping to boost the exchange rate. In prepared remarks released ahead of the post-decision press conference, Governor Tiff Macklem said “Today’s decision reflects Governing Council’s assessment that a policy rate of 5 percent remains appropriate. It’s still too early to consider lowering the policy interest rate”. “Looking ahead, we continue to expect inflation will be close to 3 percent through the middle of the year...

The Federal Reserve’s preferred inflation measure accelerated in January, helping further ratify the Federal Reserve’s cautious stance on rate cuts. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.4 percent in January from the prior month, bringing the three-month annualized pace up to 2.6 percent – still within the central bank’s target range but headed in the wrong direction. On a year over year basis, base effects saw core price growth slowing to 2.8 percent from 2.9 percent prior, closely aligning with consensus estimates.  The overall personal consumption expenditures index...