US job creation remains strong, supporting yields and the dollar. Canada’s … doesn’t.
US job creation held up and the unemployment rate held steady last month, further reinforcing market expectations for a prolonged period on the sidelines from the Federal Reserve. According to the Bureau of Labor Statistics, 115,000 roles were added in April—representing an overshoot relative to the 65,000-job consensus forecast—while the jobless rate stayed at 4.3%. The two previous months were revised lower by a modest 16,000 positions, and average hourly earnings climbed 0.2% month-over-month, slowing slightly from the pace set in the prior month, but rising 3.6% year-over-year—exceeding the 3.3% pace of headline inflation over the same period. We suspect...