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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 0.39% Gold: 0.20% Oil - US Crude: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UW9v34zi10
  • Precious Metals Update: #Gold 1464.58 (+0.20%), #Aluminum 1757.00 (-0.45%), and #Copper 6075.00 (+1.42%) [delayed]
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 76.96%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mNITYvAnEp
  • Commodities Update: NYM WTI Crude 59.27 (+0.42%), ICE Brent Crude 64.35 (+0.16%), NYM NYH Gasoline 165.38 (-0.06%). [delayed]
  • US Equities Update (Tuesday Close): $DJI -0.10% $SPX -0.11% $NDX -0.09% $RTY -0.01% $VIX +0.13%
  • Damn ➡️Palladium prices up over 50% vs USD year-to-date, reached past 1900 for the first time today. Since bottoming in 2016, the precious metal has risen over 285%. $XPDUSD https://t.co/S5hcaj1FMZ
  • US Yield Curves Update: 2Yr/5Yr: 3.6 2Yr/10Yr: 19.2 2Yr/30Yr: 61.6 5Yr/10Yr: 15.7
  • My crude oil price outlook for the coming days as markets await trade headlines https://www.dailyfx.com/forex/market_alert/2019/12/10/Crude-Oil-Price-May-Climb-on-OPEC-Meeting-Outcome-if-Trade-War-Allows.html?ref-author=phanks #OOTT #Crude https://t.co/vlfmDDWiWJ
  • RT @KGeorgieva: Global growth for 2019 is forecast to be at its lowest level since the global financial crisis. In a few minutes, I’ll join…
  • RT @adampayne26: I’m told the new YouGov MRP coming out shortly makes slightly less happy reading for the Conservatives
Strong Canada Employment Report to Curb USD/CAD Rebound

Strong Canada Employment Report to Curb USD/CAD Rebound

2018-08-10 11:00:00
David Song, Currency Strategist
Share:

Trading the News: Canada Net Change in Employment

Updates to Canada’s Employment report may curb the recent rebound in USD/CAD as the economy is expected to add another 19.0K jobs in July.

Image of DailyFX economic calendar

After delivering a 25bp rate-hike in June, data prints pointing to a strengthening labor market may encourage the Bank of Canada (BoC) to further normalize monetary policy over the coming months as the ‘Governing Council expects that higher interest rates will be warranted to keep inflation near target.’ In turn, Governor Stephen Poloz & Co. may continue to prepare Canadian households and businesses for higher borrowing-costs at the next meeting on September 5, and a positive development may ultimately spark a bullish reaction in the Canadian dollar as it boosts bets for an imminent BoC rate-hike.

However, a below-forecast employment print may fuel the recent advance in USD/CAD as it dampens the outlook for growth and inflation, with the Canadian dollar at risk of facing headwinds over the near-term as market participants push out bets for the next BoC rate-hike. Sign up and join DailyFX Currency Analyst David Song LIVEto cover the updates to Canada’s employment report.

Impact that Canada Employment report has had on USD/CAD during the last print

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

JUN

2018

07/06/2018 12:30:00 GMT

20.0K

31.8K

+22

-11

June 2018 Canada Net Change in Employment

USD/CAD5-Minute Chart

Image of usdcad 5-minute chart

Canada employment bounced back 31.8K in June after contraction 7.5K the month prior, while the jobless rate unexpectedly climbed to 6.0% from 5.8% during the same period as the labor force participation rate climbed to 65.5% from 65.3% in May. A deeper look at the report showed full-time employment increasing 9.1K during the month, with part-time jobs rising 22.7K, while hourly earnings narrowed to 3.5% per annum from 3.9% in May.

The initial uptick in USD/CAD was short-lived, with the exchange rate pulling back from the 1.3140 region to end the day at 1.3089. Review the DailyFX Advanced Guide for Trading the News to learn our 8 step strategy.

USD/CAD Daily Chart

Image of usdcad daily chart
  • Near-term outlook for USD/CAD remains capped by the 1.3130 (61.8% retracement) region, and there appears to be a broader shift in dollar-loonie behavior as both price and the Relative Strength Index (RSI) track the bearish trends carried over from June.
  • May see USD/CAD face range-bound prices amid the string of failed attempts to close below the 1.2980 (61.8% retracement) to 1.3030 (50% expansion) region, but a close below the stated region brings the downside targets back on the radar.
  • Next region of interest comes in around 1.2830 (38.2% retracement) followed by the Fibonacci overlap around 1.2720 (38.2% retracement) to 1.2770 (38.2% expansion), which largely lines up with the May-low (1.2729).

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide.

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

News & Analysis at your fingertips.