Statistics Canada on Friday reported a gain of 63.3k jobs in September and said the jobless rate had edged down to 5.9% from 6.0% in August. The market had forecast a gain of 25k positions.

Full-time employment dropped by 16.9k jobs while part-time positions rose by 80.2k

Bank of Canada Governor Stephen Poloz said last week that the bank would continue to raise interest rates gradually, keeping a close eye on economic data. The banks' next fixed date rate announcement is on October 24.

Since Poloz spoke, U.S. and Canadian negotiators wrapped up a deal on NAFTA. Poloz had said the talks were one major cause of uncertainty facing the bank.

Investor expectations of an interest rate hike in October were little changed at about 85%, the overnight index swaps market indicated. After NAFTA and today’s jobs data we think BoC hike is a done deal.

Average hourly wages, a figure watched closely by the central bank, rose by 2.2% in September from a year earlier. This was the smallest year-on-year increase since the 2.2% gain in September 2017.

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