Canada labor productivity QoQ 1.4% vs 1.2% estimate

1Q Canada labor productivity

The 1Q labor productivity showed a 1.4% increase in the 1Q vs 1.2% estimate. The gain was greater than the 0.4% increase in the 4Q

• Unit labor costs were -0.4% in 1Q vs 0.4% in the 4Q
• Hours worked fell -0.3% in 1Q vs +0.4% in 4Q
• The rise was the highest since 2Q 2014
• 2nd largest increase in productivity in the past decade

The USDCAD is weaker (Cad stronger) after the weaker US NFP and the stronger Canada data. The 100 and 200 hour MAs are being approached at 1.3474-81. That level held support in yesterday's trading.