Heads up, Loonie merchants! We’ve acquired a top-tier Canadian report lined up later within the week, and this may very well be an good news play.
This Friday at 1:30 pm GMT, Canada will print its employment figures for the month of December.
Planning on buying and selling the occasion? Listed below are the factors you’ll want to know first:
What occurred final time?
- November hiring elevated by 153.7K vs. 36.5K consensus
- This was additionally considerably greater than the sooner 31.2K improve for Oct
- Jobless fee improved sharply from 6.7% to six.0%
Canada printed a powerful headline employment acquire of 153.7K in November final 12 months, surpassing the estimated 36.5K improve and the sooner 31.2K pickup.
This was sufficient to convey the unemployment rate down from 6.7% to six.0%, which is fairly near pre-pandemic ranges. This marked the sixth consecutive month-to-month drop in joblessness and the most important decline since March 2021.
Underlying elements of the report confirmed a number of optimistic factors, with good points evenly pushed by full-time and part-time hiring. Whole hours labored additionally elevated, suggesting a return to regular working situations.
What are merchants anticipating this time?
- Internet addition of 24.5K jobs anticipated for December 2021
- Jobless fee to carry regular at 6.0%
Analysts undertaking a gradual improve in hiring for December, particularly with the Omicron variant throwing a curveball for companies up to now month.
Weaker than anticipated jobs progress or a shock decline in hiring may convey bearish vibes for the Loonie, as this may forged doubts on the BOC’s tightening timeline.
Oh, and don’t overlook to think about broader financial themes in your trades!
Market gamers may simply be regaining their bearings this week whereas some may very well be caught in trip mode, however that doesn’t imply worth motion will likely be boring.
Threat-off themes similar to considerations about rising Omicron circumstances and potential lockdowns might additionally preserve a lid on Loonie rallies, together with the dearth of any OPEC crude oil output changes.
Take note of these storylines as nicely earlier than contemplating your lengthy or brief bias earlier than/after the occasion.
Nonetheless, deciding which foreign money to commerce towards the Loonie?
Try this MarketMilk™ performance ranking of CAD pairs that can assist you gauge which may be the strongest bullish or bearish rivals:
Not feeling assured about buying and selling the occasion in any respect? That’s okay, you’ll be able to at all times stay in the sidelines and observe the Loonie’s response to the discharge.