US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
How is the Canadian labor market doing?
Canadian jobs data will be announced on Thursday at 15:30 MT time.
Instruments to trade: USD/CAD, EUR/CAD, GBP/CAD, CAD/JPY
Canadian employment change and the unemployment rate will be announced this Thursday and will refer to the month of March. The overall unemployment in February was 5.6%, which was slightly higher than 5.5% in the previous month. In general, the picture in the labor market was moderately positive with more than 30K added jobs. In March, however, it may be difficult to expect the same it was the “hardest” month in the context of the virus damage so far. Also, the oil industry, which is central to Canada as it exports crude to the US, may take a hit and contribute to lower figures.
- If the job data is worse than the market expects, the CAD will drop.
- Otherwise, it will increase in value.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.