Market news
07.01.2022, 12:32

When is the Canadian jobs report and how could it affect USD/CAD?

Canadian employment details overview

Statistics Canada is scheduled to publish the monthly jobs report for December later this Friday at 13:30 GMT. The Canadian economy is anticipated to have added 27.5K new jobs during the reported month, marking a sharp decelerating from a massive growth of 153.7K in November. That said, the unemployment rate is expected to hold steady at 6.0% and the Participation Rate is also likely to remain unchanged at 65.3%.

How could the data affect USD/CAD?

Ahead of the key release, bullish crude oil prices underpinned the commodity-linked loonie and acted as a headwind for the USD/CAD pair. Apart from this, modest US dollar weakness weighed on the major for the second successive day. Stronger Canadian employment details should provide additional lift to the domestic currency, though the data is likely to be overshadowed by the simultaneous release of the US NFP report. 
Nevertheless, any significant divergence from the expected readings might still influence the Canadian dollar and infuse some volatility around the major.

Meanwhile, Dhwani Mehta, Senior Analyst at FXStreet, offered a brief technical outlook and important technical levels to trade the major: “USD/CAD has confirmed a falling wedge breakout on the daily sticks a day before, with the bulls now recapturing the critical 21-Daily Moving Average (DMA) at 1.2798. The pain in the Canadian dollar could be exacerbated if the jobs data fall short of the market’s expectations, prompting the pair to break through the recent range highs around 1.2850. Further up, all eyes will remain on the 1.2900 level. The 14-day Relative Strength Index (RSI) looks north just above the midline, backing the bullish view.”

“Only an upside surprise on the Canadian jobs data or a big disappointment on the US NFP report could save the day for CAD bulls. In that case, the spot could retrace to test the wedge resistance-turned-support at 1.2723, below which a sharp drop towards the bullish 50-DMA at 1.2684 will be in the offing,” Dhwani added further.

Key Notes

  •   Canadian Jobs Preview: Slowdown in jobs growth could worsen CAD’s plight

  •   USD/CAD bounces off daily low, defends 1.2700 mark ahead of US/Canadian jobs report

  •   USD/CAD Outlook: Overnight pullback warrants caution for bulls amid rallying oil prices

About the Employment Change

The employment Change released by Statistics Canada is a measure of the change in the number of employed people in Canada. Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive, or bullish for the CAD, while a low reading is seen as negative or bearish.

About the Unemployment Rate

The Unemployment Rate released by Statistics Canada is the number of unemployed workers divided by the total civilian labour force. It is a leading indicator for the Canadian Economy. If the rate is up, it indicates a lack of expansion within the Canadian labour market. As a result, a rise leads to weaken the Canadian economy. Normally, a decrease of the figure is seen as positive (or bullish) for the CAD, while an increase is seen as negative or bearish.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location