Canada Jobs Preview:
- According to a Bloomberg News survey, consensus forecasts call for a gain of +52.5K jobs after a loss of -212.8K previously.
- Ongoing strength in energy markets has helped bolster CAD-crosses; CAD/JPY is pressing fresh yearly highs amid its bullish breakout attempt.
- Will USD/CAD test its yearly lows? Can CAD/JPY keep its bullish breakout going? Will energy markets remain supportive? We’ll discuss these questions and more in context of the February Canada jobs report starting at 8:20 EST/13:20 GMT. You can join live by watching the stream at the top of this note.
Looking for a Rebound
After a harrowing reading of -212.8K in January, the Canadian labor market is looking for a relatively modest expansion in February. Bloomberg News consensus forecasts call for the February Canada jobs report to show that the economy added +52.5K jobs.
The unemployment rate is expected to fall back to 9.3% from 9.4%, after sharply moving off of the November 2020 low of 8.5%. A better reading of the Canadian labor report alongside further strength in energy prices may allow for the Loonie to regain its footing by the end of the week.
Will USD/CAD test its yearly lows? Can CAD/JPY keep its bullish breakout going? Will energy markets remain supportive? We’ll discuss these questions and more in context of the February Canada jobs report starting at 8:20 EST/13:20 GMT. You can join live by watching the stream at the top of this note.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
