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