Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
CAD Unemployment Rate: What’s New?
What will happen?
Statistics Canada will announce their monthly employment change and unemployment rate on April 8, at 15:30 MT. The report will show the actual change in the number of the country’s employed people. It’ll also give the percentage of the total labor force of unemployed people actively looking for work. This data reflects the overall economic health because consumer spending is highly correlated with labor market conditions.
Possible CAD moves
Last month, Canada's labor market showed signs of finally recovering from the COVID-19 shock – labor force participation and unemployment rates are above levels seen just before the pandemic. In February, a gain of 337,000 jobs offset the Omicron-related January loss of 200,000 jobs and lowered the unemployment rate to 5.5%.
The results positively affected the CAD. After the release, the USDCAD pair went down 715 points.
How to trade on CAD unemployment rate release?
If employment change’s results are greater than expected, it’s better for currency. The unemployment rate is vice versa: the less, the better. In turn, it affects the currency.
- If the unemployment rate is high, the CAD will fall.
- Otherwise, the CAD will rise.
- If the employment change announcement is greater than expected, CAD will strengthen.
Check the Economic Calendar.
Instruments to trade: USDCAD, EURCAD, CADJPY
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
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.