Look out traders! On Friday the 9th of April, Canada will be printing their jobs report and here's what to expect...
Quick Summary of February Report:
Canada added 259.2k jobs in February vs 98.5k consensus
Unemployment rate fell from 9.4% to 8.2% vs 9.2% forecast
The February report turned out much better than expected, as the economy added 259.2k jobs versus the estimated 98.5k which was enough to push the unemployment rate down to 8.2%, which was the lowest since the Covid-19 crash in March 2020. As lockdown is beginning to ease around the world, focusing on Canada specifically, both part-time and full-time jobs are very quickly picking up.
What's Expected Now:
Employment gains of 90k
Unemployment rate to continue falling from 8.2% to 8.0%
Although the employment gains are expected to be a lot less than the previous month, this should still be enough to continue pushing the unemployment rate lower. If the "Actual" figure comes out to be greater than "Forecast", this is good for the currency.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. The number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labour-market conditions.
Impact on USD/CAD:
If you're trying to decide how this will impact the USDCAD, take a read through the deep dive article here to read my long-term views on the currency, and specifically this market.
As there will be no other major catalysts on Friday, this release will likely spark some strong intraday movement in CAD pairs.
Specifically, I am looking to go short on USDCAD and continue the long-term bearish momentum. If the "Actual" figure is greater than 90k we could see some serious strength in the CAD that could likely push price back down away from this LV at 1.26.
Save time looking for setups with the EdgeFinder's watchlist! In a glance, see the EdgeFinder's current top buys and top sells.
As of 9:10 am EST, the 10-Year bond rate is up ~3.50% while the dollar index remains flat. Some big news coming up in the next 24 hours for the USD, EUR and AUD. US consumer confidence is expected to fall from the last reading. We received a strange signal from the EdgeFinder that could […]
This week, we have seen a lot of market swings in sentiment along with uncertainty around economic stability. Because of this mixed mindset, investors have been shifting their interest towards gold. This article will cover why gold could continue to move higher. Medium to high impact news is coming up for all currencies such as […]
There are some major news ahead for the EUR, CAD, AUD and USD pairs this week. Wednesday will be another Fed rate decision forecasted to be another 25 bp. Here are some events set to come out tomorrow: EdgeFinder Analysis UC is still the EdgeFinder's favorite buy score along with USDZAR at +7. Retail is […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here