News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
USD/CAD: Post-BoC Losses to Accelerate on Strong Canada Employment

USD/CAD: Post-BoC Losses to Accelerate on Strong Canada Employment

David Song, Strategist

- Canada Employment to Increase for Ninth Consecutive Month.

- Jobless Rate to Hold at Annualized 6.3%- Lowest Reading Since 2008.

- Sign up & Join DailyFX Currency Analyst David Song LIVE to Cover Canada’s Employment Report.

Trading the News: Canada Net-Change in Employment

DailyFX Calendar

Another 15.0K expansion in Canada Employment may fuel fresh 2017-lows in USD/CAD as it puts pressure on the Bank of Canada (BoC) to implement additional rate-hikes over the coming months.

The BoC may move to the sidelines after delivering two consecutive rate-hikes as the central bank notes ‘Future monetary policy decisions are not predetermined and will be guided by incoming economic data and financial market developments as they inform the outlook for inflation.’ Nevertheless, Governor Stephen Poloz and Co. appear to be on course to further normalize monetary in 2018 as ‘the level of GDP is now higher than the Bank had expected,’ and the central bank may continue to change its tune over the coming months as ‘growth in Canada is becoming more broadly-based and self-sustaining.’

Impact that Canada’s Employment report has had on USD/CAD during the previous print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUL

2017

07/12/2017 14:00:00 GMT

12.5K

10.9K

+48

+87

July 2017 Canada Net-Change in Employment

USD/CAD 5-Minute Chart

USD/CAD Chart

The Canadian economy added another 10.9K jobs in July following the 45.3K expansion the month prior, while the Unemployment Rate unexpectedly slipped to an annualized 6.3% from 6.5% as the Participation narrowed to 65.7% from 65.9% during the same period. Nevertheless, a deeper look at the report showed the gains were led by a 35.1K expansion in full-time employment, while part-time positions narrowed 24.3K after climbing 37.1K in June. The Canadian dollar struggled to hold its ground following the mixed report, with USD/CAD clearing the 1.2600 handle to end the day at 1.2649.

How To Trade This Event Risk(Video)

Bullish CAD Trade: Canada Employment Increases 15.0K or More

  • Need a red, five-minute candle following the report to favor a short USD/CAD trade.
  • If market reaction favors a bullish loonie position, sell USD/CAD with two separate lots.
  • Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward.
  • Move stop to breakeven on remaining position once initial target is met, set reasonable limit.

Bearish CAD Trade: Labor Report Continues to Disappoint

  • Need a green, five-minute USD/CAD candle to favor a short loonie position.
  • Implement the same setup as the bullish loonie trade, just in the opposite direction.

Potential Price Targets For The Release

USD/CAD Daily Chart

USD/CAD Daily Chart

Check out our USD/CAD quarterly projections in our FREE DailyFX Trading Forecasts

  • Downside targets remain on the radar for USD/CAD as it initiates a series of lower highs & lows, with the pair taking out the June 2015-low (1.2128).
  • The Relative Strength Index (RSI) also reinforces a bearish outlook at the momentum indicator preserves the negative slope from earlier this year and slips back into oversold territory.
  • In turn, a break/close below the 1.2080 (61.8% expansion) region may open up the 1.1890 (78.6% expansion) hurdle, which sits just beneath the May 2015-low (1.1920).
  • Interim Resistance:1.2770 (38.2% expansion) to 1.2830 (38.2% retracement)
  • Interim Support: 1.1890 (78.6% expansion) to 1.1920 (May 2015-low)

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES