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Canada’s impressive employment reports saved the Loonie’s price action last week. What catalysts could move the comdoll this week? Here are a few possible market-movers:

Crude oil inventories (Jan 10, 3:30 PM GMT)

As mentioned below, the Canadian dollar didn’t track oil prices when unrest in Iran boosted Black Crack prices higher. But will this week’s relatively light economic calendar force traders to pay attention to crude oil data?

On Wednesday the Energy Information Administration will print its weekly report and we’ll know if the U.S. crude oil stocks fell further after seeing 7.4-million barrel drop in the week ending December 29.

Last week’s price review

CAD/JPY Daily Forex Chart
CAD/JPY Daily Forex Chart

CAD/JPY is knocking on the 91.50 psychological area, which isn’t surprising since it lines up with a previous support zone AND what looks like a ceiling of an ascending triangle on the daily time frame. Will we see a breakout this week? Or will CAD drop back down to the 88.00 area of interest?

Last week’s price review

The Loonie belatedly snatched victory from the Kiwi and is the one currency that ruled them all this week.

Overlay of CAD Pairs & Crude Oil (Black Line): 1-Hour Forex Chart
Overlay of CAD Pairs & Crude Oil (Black Line): 1-Hour Forex Chart

And the Loonie’s victory this week was all thanks to Canada’s impressive jobs report. And I do mean it since the Loonie didn’t really track oil higher when oil surged because of the unrest in Iran on Tuesday.

Going back to Canada’s December jobs report, that printed a 78K increase in jobs when only a 2K was expected. And it’s a healthy jobs growth since 23.7K full-time jobs were added while part-time employment increased by 54.9K.

Moreover, Canada’s jobless rate improved from 5.9% to 5.7%, which is 41-year low. And as icing on the cake, wages grew by 0.23% month-on-month, which marks the fifth consecutive month of wage growth. This translates to a year-on-year increase of 2.73%, which is a bit weaker than November’s 2.78%, but is still the second-strongest annual reading since April 2016.

Given all the above, market analysts concluded that odds for another BOC rate hike increased, so it’s not all that surprising why the Loonie reacted so strongly.