The U.S. isn’t the only one printing labor market reports this week!
Read on to see what you can expect from Canada’s release.
And, while you’re at it, check out the other catalysts that might affect the Loonie’s price action!
Labor market reports (Aug 7, 12:30 pm GMT)
- The unemployment rate improved from 13.7% to 12.3% in June
- The economy had added a net 953K jobs, higher than the 290K jobs created in May and the expected 700K uptick
- The better-than-expected jobs numbers and vaccine headlines at the time boosted CAD from its weekly lows
- Net addition of 1.1M jobs are expected in July
- The unemployment rate could further dip to 11.9% for the month
- Take note that the report will be released at the same as the U.S. NFP numbers
- The IVEY PMI, normally a leading indicator for the jobs market, will be printed after the official numbers are out (2:00 pm GMT) and is expected to improve from 58.2 to 58.5 in July
- Markit’s manufacturing PMI (Aug 4, 1:30 pm GMT) is expected to rebound from 47.8 to 48.6 in July
- Trade balance (Aug 5, 12:30 pm GMT) to see a wider (1B CAD) deficit in June as imports growth outpaces exports
Overall risk sentiment
- Lockdown headlines will influence crude oil prices, which can affect the demand for the oil-related Loonie
- PMI reports, central bank events, and other top-tier releases from other major economies can force the Loonie to trade on counter currency price trends
- Stochastic considers the pound “oversold” against the European currencies on the daily time frame
- CAD may soon hit “overbought” status against the USD
- CAD remains in neutral territory against NZD
- SMAs show CAD’s short and long-term bearish trends against EUR and GBP
- Watch out for short-term retracement opportunities on AUD/CAD, CAD/CHF, CAD/JPY, and USD/CAD
- CAD saw the most volatility against JPY, CHF, GBP, and AUD in the last month