Canada’s labor market numbers will be under the spotlight! What are markets expecting and what other events can affect the Loonie’s price action?
Let’s take a look at the major reports on tap this week:
Trade balance (May 5, 12:30 pm GMT)
- CA’s trade deficit narrowed down from 1.7B CAD to 983M CAD in February
- The report wasn’t enough to offset overall risk aversion at the time
- Market see the deficit ballooning to 2.25B CAD in March
IVEY PMI (May 7, 2:00 pm GMT)
- Traders consider the report a legit leading indicator for the employment numbers
- After falling from 54.1 to 26.0 in March, markets now see a 24.3 reading in April
Labor market data (May 8, 12:30 pm GMT)
- The number of employed fell by 1 million in March, the largest in any of the three significant recessions since 1980
- A net of 5 MILLION workers might have lost jobs in April
- Unemployment rate could hit 20.0% after rising from 5.6% to 7.8% in March
Crude oil updates
- Canada is one of the world’s biggest crude oil producers, so oil updates affect CAD’s prices
- Trade tensions between the U.S. and China has affected oil prices last week and will continue to do so this week
- Reopening of key economies can affect demand for Black Crack and the Loonie
Technical snapshot
- CAD registered its biggest losses against CHF, EUR, and JPY in the last seven days
- CAD only saw gains against AUD in the last week
- Stochastic is flagging CAD’s “oversold” conditions against AUD
- The Loonie is still on bearish trends across the board even as it clocks in short-term gains against AUD
Missed last week’s price action? Read CAD’s price recap for April 27 – May 1!
