- CA net employment change: 12.1K vs. 10K expected, 12K previous
- CA unemployment rate: 7.1% vs. 7.0% expected and previous
- US import price index: -0.1% vs. -0.5% expected, -1.6% previous
- US wholesale inventories: 0.1% vs. -0.3% previous
- BOC outlook survey shows lukewarm sentiment over drop in oil prices
The major currencies were in Chopsville for most of the U.S. session as we saw limited volatility from forex traders on Friday.
The biggest story of the U.S. session was Canada’s jobs numbers, which looked positive at first glance but failed to impress in fine print. The report showed that a net of 12,100 workers had found jobs in September when analysts had been expecting only a 10,000 increase, but a closer look, however, reveals that most of the gains came from part-time jobs–an increase of 74,000 while a net of 61,900 workers lost their full-time positions.
The public and private sectors also lost a total of 18,600 jobs while self-employment jumped by 30,800. Not a good sign since self-employment usually leads to unemployment. Last but not least is the headline unemployment rate, which popped up from 7.0% to a 19-month high of 7.1%. This would not have been as bearish if not for the labor participation rate stagnating at 65.9%.
The Loonie weakened across the board with USD/CAD ending the session unchanged at 1.2938 after popping to a high of 1.2992. CAD/JPY also slipped by 7 pips (-0.04%) to 192.93 after hitting a low of 92.55 while AUD/CAD rose to .9478 after seeing a session high of .9491.
The rest of the major currencies showed unremarkable forex price action, probably because there weren’t any big catalysts for big moves. The Greenback was mixed against its major counterparts with EUR/USD slipping by 5 pips (-0.04%) to 1.1355 while GBP/USD fell by 18 pips (-0.12%) to 1.5319. USD/JPY also inched 7 pips lower (-0.06%) to 120.23 and USD/CHF steadied just above the .9600 handle.
Even the comdolls failed to show any major moves. The Aussie, the biggest winner of the week, barely moved against the dollar at the same time when NZD/USD also lollygagged around the .6700 levels.
Will we see more volatility today? Japan’s markets are out on Health-Sports Day holiday and there are no tier 1 reports scheduled for release. This doesn’t mean that you shouldn’t watch your charts, though! Take this time to look at possible trade opportunities and make trading plans for the week ahead. Read up on what events moved the currencies around last week to see if there are any potential volatility-inducers this week!
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