CAD flows: CAD little changed after employment report

The Canadian employment report is broadly in line with consensus, although the rise in the unemployment rate to 6.9% is larger than anticipated. While the 7k employment gain in marginally above consensus, the underlying labour market trend is deteriorating, and the risks for the CAD look to be on the downside, given the likely substantial negative impact from tariffs, especially since USD/CAD has outperformed its usual correlation with yield spreads this year.