Canada may only have one or two reports scheduled but you can bet pips that Loonie traders will be watching them!
Here’s a list of potential Loonie movers to keep your eyes on:
Labor market reports (Nov 6, 1:30 pm GMT)
- Canada added a net of 378K jobs in September, bringing employment to within 720,000 (-3.7%) of its pre-COVID February level
- The unemployment rate dipped from 10.2% to 9.0% for the month
- CAD jumped against USD but still fell against its other counterparts as the U.S. printed a notable high in coronavirus cases and Mitch McConnell hinted that a stimulus package is unlikely “in the next three weeks”
- Analysts see a net addition of 70K jobs in October
- The unemployment rate could further dip to 8.9%
- The IVEY PMI, usually considered a leading indicator, won’t be printed until AFTER the government numbers are released but is expected to clock in at 54.0 (from 54.3)
Market risk sentiment
- Lockdowns in the Eurozone dented global demand for crude oil and dented the oil-related Loonie last week
- The outcome of the U.S. elections can influence overall risk appetite in the next couple of days
- Rising coronavirus infections and lockdown prospects can also affect intraweek trends for high-yielding bets like the Loonie
Technical snapshot
- CAD has gained significant ground against AUD in the last month
- The Loonie has weakened the most against the safe-havens during the time period
- Stochastic considers the Loonie “oversold” against the Kiwi and yen on the daily time frame
- CAD could soon hit oversold status against GBP and USD
- AUD/CAD and EUR/CAD remain in neutral territory…for now
- The Loonie saw the most volatility against the safe-havens in the last seven days
