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Both the U.S. and Canada are printing their labor market data!

With the next trading sessions promising more volatility, I’m setting my sights on USD/CAD today.

But first, let’s go over the headlines that moved the markets during the Asian session:

Major FX Pairs Price Performance from MarketMilk
Major FX Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Japan’s leading indicators at 5:00 am GMT
  • Germany’s industrial production at 6:00 am GMT
  • Germany’s trade balance at 6:00 am GMT
  • France’s industrial production at 6:45 am GMT
  • France’s quarterly private payrolls at 6:45 am GMT
  • France’s trade balance at 6:45 am GMT
  • U.K.’s Halifax house price index at 7:30 am GMT
  • U.S. NFP numbers at 12:30 pm GMT
  • Canada’s labor market data at 12:30 pm GMT

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

In my previous post, I’ve shared how EUR/USD’s range may yield opportunities during the U.S. NFP release.

But do you know what’s better than watching one setup? Keeping tabs on TWO possible trade opportunities!

USD/CAD is trading just above the 1.3350 handle, which lines up with a solid support from late July, a 61.8% Fib retracement, and the 200 SMA on the 1-hour time frame.

If today’s U.S. NFP numbers come in better than markets are expecting, then we could see the dollar pop against the Loonie (maybe to 1.3400?) before a bit of risk-taking drags USD/CAD back to its downtrend.

If we see grim numbers from the U.S., however, then the Greenback could take some hits before its safe-haven status bumps it to last week’s highs.

But wait! Don’t forget that Canada is also publishing its labor market numbers!

Like in the U.S., markets are expecting more (but slower) job creation in July. Unless we see significant hits or misses in Canada’s data, though, then USD/CAD will likely move to the beat of overall risk sentiment during the London and U.S. sessions.