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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
CAD Forex Pairs Performance from MarketMilk
CAD Forex Pairs Performance from MarketMilk
  • 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 Forex Pairs EMAs from MarketMilk
CAD Forex Pairs EMAs from MarketMilk
  • CAD was most volatile against GBP, JPY, AUD, and CHF in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read CAD’s price recap for Sept 28 – Oct 2!