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Canada is printing its labor market numbers for the month of December! What are market players expecting?

Read these lists if you’re planning on trading the Loonie in the next few days!

Labor market data (Jan 8, 1:30 pm GMT)

  • Canada added a net of 62,100 jobs in November, much higher than analysts’ estimates
  • The unemployment rate also slipped from 8.9% to 8.5%
  • CAD jumped across the board but that may have also been due to OPEC and friends reaching a compromise on the 2021 output cut plans
  • Markets see the economy losing a net of 20,000 jobs in December while the unemployment rate could hold at 8.5%
  • The IVEY PMI (Jan 7, 3:00 pm GMT) – a leading indicator for the report – is expected to rise from 52.7 to 53.2

Crude oil volatility

  • Canada exports lots of crude oil, so the demand for the Black Crack can affect CAD’s prices
  • Start-of-year and vaccine optimism can boost risk-taking and crude oil prices
  • Uncertainty over U.S. politics can either limit risk rallies or drag the U.S. dollar lower across the board
  • U.S. NFP and FOMC updates can influence USD/CAD’s trends and affect other major CAD pairs

Technical snapshot

  • RSI is showing CAD’s “oversold” conditions against AUD
  • CAD is now “overbought” against USD on the daily time frame
  • CAD/CHF and CAD/JPY remain mostly in neutral territory
CAD Forex Pairs RSI from MarketMilk
CAD Forex Pairs RSI from MarketMilk
  • SMAs reflect CAD’s short and long-term bearish trends on the daily
  • The Loonie is on short and long-term bullish trends against the safe-havens
  • CAD is seeing short-term demand against EUR and NZD
CAD Forex Pairs SMA from MarketMilk
CAD Forex Pairs SMA from MarketMilk
  • The Loonie has seen the most volatility against its fellow comdolls and the European currencies in the last seven days
CAD Forex Pairs Volatility from MarketMilk
CAD Forex Pairs Volatility from MarketMilk