Canadian employment defies gravity - TD Securities

"The Canadian economy added 56k jobs in February, well above the market consensus for unchanged employment, while further gains in labour force participation saw the unemployment rate hold at 5.8%," noted TD Securities analysts.

Key quotes

"Wage growth for permanent employees firmed to 2.2% y/y which added to the upbeat tone of the report, although this will do little to change convictions at the Bank of Canada where the broader slowdown is a more important factor."

"Rates: The knee-jerk move higher in CAD rates should be short-lived, and we continue to favour owning the CAD front-end outright or versus the US, and we like owning the belly versus long bonds."

"FX: The CAD received a jolt of life, but we think this should be faded as the currency's prospects remain troubled with limited to no policy impulse. 1.3380/1.3400 remains formidable support."