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
More View more
Real Time News
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
Canadian Employment Paints Choppy Picture for Bank of Canada's Next Move

Canadian Employment Paints Choppy Picture for Bank of Canada's Next Move

Dylan Jusino,

Talking Points:

- Unemployment is just a notch lower at 6.2% compared to analysts estimates at 6.3%.

- Net change in Canadian employment for August came in line at 22.2k.

- Part-time employment soars to 110.4k, full-time employment -88.1k.

- Chop in the Loonie puts it at the pre-data level of 1.2093.

See our longer-term forecasts for the US Dollar, Euro, British Pound and more with the DailyFX Trading Guides

The Bank of Canada (BoC) will probably overlook today’s mixed jobs reports at their October interest rate announcement. Unemployment ticked slightly lower at 6.2% compared to expectations at 6.3%. But the change was laregy due to a strong increase in part-time employment by 110.4k compared to -24.3k previously. Conversely, full-time employment change in August decreased by -88.1k versus +35.1k in July. Capactity utilization came in line with analyst’s estimates at 85% versus 83.2% previously (revised down by 0.1%). The net change in employment was 22.2k beating the estimated 15.0k figure.

As we come off of the surprise rate hike from the BoC, it is unclear what this might be mean for their October interest rate decision. We may be able to attribute the decline full-time and part-time employment changes to seasonality particularly in the retail industry. However, one of the more concerning implications is what this might mean for Canadian consumer spending and income growth. Less full-time employees may point to softer consumption going forward, which in turn, may lower the pace of economic activity. For this reason, it may be important to monitor GDP data for the month of August to see the impact on consumption.

Here are the prints that have been impacting the Canadian Dollar this morning:

- CAD Labor Productivity (QoQ) (2Q): 85.0%as expected, from 83.3% (revised lower from 83.3%).

- CAD Net Change in Employment (AUG): 22.2k versus 15.0k expected, from 10.9k previously.

- CAD Unemployment Rate (AUG): 6.2% versus 6.3% expected, from 6.3% previously.

- CAD Full Time Employment Change (AUG): -88.1k, from 35.1k previously.

- CAD Part Time Employment Change (AUG): 110.4k, from -24.3k previously.

- CAD Participation Rate (AUG): 65.7k, from 65.7k previously.

See the DailyFX economic calendar for Friday, September 8, 2017

Chart 1: USDCAD 15-minute Chart (September 8, 2017 Intraday)

Canadian Employment Paints Choppy Picture for Bank of Canada's Next Move

The reaction we’re seeing today in the Canadian Dollar is nothing like the +1% increase that we saw after the BoC rate hike. We saw that there was chop USDCAD immediately following the print. At the time that this report was written the US Dollar advanced slightly +.02% at This is one of the most intense, intraday moves USD/CAD has experienced this year. On a higher time frame (Daily chart), we find that this pair is now trading at lows last seen in June 2015.

--- Written by Dylan Jusino, DailyFX Research

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

DISCLOSURES