Canada is printing its employment numbers this week! How will the Loonie react?
More importantly, will the report even register against other market themes?
I’ve made a list of the potential catalysts that you need to know about:
Labor market numbers (Oct 9, 12:30 pm GMT)
- Canada added a net 246K jobs in August (vs. 263K expected) while the unemployment rate dipped from 10.9% to 10.2% (vs. 10.1% expected)
- CAD still gained ground thanks to a positive U.S. NFP report boosting overall risk appetite
- Analysts see another 250K job additions in September
- Unemployment rate could dip from 10.2% to 10.1% for the month
- The IVEY PMI report (Oct 7, 2:00 pm GMT), widely considered as a leading indicator of the official numbers, is seen ticking higher from 67.8 to 68.0
Market risk appetite
- As we’ve seen in last week’s price action, CAD responds to headlines that may affect the demand for crude oil
- Lockdown news in the European region, global growth updates, and vaccine progress are some of the topics that affect crude oil (and CAD’s) demand
- Trump’s health, the U.S. elections, and Brexit negotiations can also influence overall risk-taking in the markets
- Updates from major central bankers like the Fed, ECB, BOE, RBA, and BOC can cause intraday volatility among CAD major pairs
Technical snapshot
- CAD gained value against the safe havens and the euro in the last seven days
- CAD lost pips against its fellow comdolls in the same period
- EMAs show the Loonie’s short and long-term bearish trend against the pound
- CAD is seeing short-term bullish pressure against most of its major counterparts
- The Loonie remains bullish against the dollar
- CAD was most volatile against GBP, JPY, AUD, and CHF in the last seven days
Missed last week’s price action? Read CAD’s price recap for Sept 28 – Oct 2!
