Uncle Sam isn’t the only one printing jobs numbers this week!
Will the Loonie bulls step up their game before and after the report is printed?
Here are points you can note if you’re trading the comdoll in the next few days!
Employment reports (Feb 5, 1:30 pm GMT)
- Canada lost a net of 62,600 jobs in December, almost double the job losses that analysts had expected and marks the first decline since April
- The unemployment rate inched up from 8.5% to 8.6% as expected
- CAD dropped across the board though it edged up against its non-dollar counterparts before the day ended
- Analysts see a net addition of 35,000 jobs in January
- The unemployment rate could hit 8.7%
- The IVEY PMI, which is usually a leading indicator for the official numbers will be printed an hour and a half after Statistics Canada’s release
- The report will also be printed at the same time as the U.S. NFP report, which means that we could see extra extra volatility during the U.S. session
Market risk sentiment
- Better-than-expected GDP numbers from Canada last week can limit the Loonie’s losses compared to the other high-yielding currencies in times of risk aversion
- Vaccine distribution headlines and their impact on the future demand for crude oil will benefit the oil-related Loonie
- Growth forecasts by the Bank of England (BOE) and Reserve Bank of Australia (RBA) will hint at the pace of global economic recovery and potentially affect the demand for CAD
Technical snapshot
- Stochastic considers the Loonie “oversold” against the Kiwi and the pound
- CAD is also approaching oversold levels against CHF, EUR, and USD on the daily time frame
- EMAs reflect the Loonie’s short and long-term bearish trend against the Kiwi and the pound
- CAD/JPY is still bullish against short and long-term moving averages
- USD/CAD and AUD/CAD may soon see retracement/reversal opportunities
- The Loonie was most volatile against the safe-havens and the Aussie in the last seven days
