[Calxy]

Canada's economy created another 30,600 jobs in September, trouncing forecasts for a 5,000 increase. The stronger-than-expected showing was the second in a row after a 27,100 jobs increase in August. The unemployment rate unexpectedly turned down to 8.4% in September from 8.7% in August. A 24,500 decline in the labour force was partially responsible for the dip in the unemployment rate.

Although the numbers appear hot hot hot, the details were luke warm. The hottest areas were made up of factors driven by seasonal adjustments and temporary one-offs. A Canadian recovery is probably not going to be driven by the goods producing side of the economy as this sector is not aided by CAD strength. Private industries are not hiring at a solid pace and an unemployment rate of 8.4% still means there's slack in the economy. So basically, these are great numbers and will help Canada, but don't expect the Bank of Canada to panic hike anytime soon.

One last thing, youth employment showed an increase of 57,800 full time jobs. Um, aren't these numbers supposed to be from September when most kids go back to school? This seems a bit odd. Economist thinks the Statcan seasonal adjustment program misfired.

The market could overshoot down to 1.04 or even 1.0350, but at these levels things have to be getting VERY overdone and are due for a pullback.