The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
CAD: Canada Reveals Labor Data
What will happen?
Canada will reveal its jobless rate and employment change for June on July 9, 15:30 MT. What do these indicators mean? Well, the jobless rate shows the percentage of people who are unemployed and actively seeking a job, while employment change reveals how many people have become employed. The unemployment rate in Canada increased to 8.2% in May from 8.1% in April, in line with market expectations. Employment dropped by 68,000, with a major part of the decline in part-time work (-54,000).
How to trade on Canada’s employment data?
The better the labor data is – the more chances the Bank of Canada will tighten the policy, which in turn will push the Canadian dollar up.
- If the jobless rate is less and employment change is greater than forecasted, the CAD will rise.
- Otherwise, the CAD will fall.
Instruments to trade: USD/CAD, CAD/JPY, EUR/CAD
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
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This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.