Canada Employment Changes 01/08/10

7:00am CA Employment Change     Forecast 20.2K    Previous 79.1K       (Unemployment Rate     8.5%)
ACTION:             BUY -10K       SELL 50K            USD/CAD

We’ll be trading the Canadian Employment Changes today, which is going to be the first of two high impact news releases for this Friday, with NFP being the second event scheduled just 90 minutes later.  We are looking for a surprise factor (trigger, deviation) of 30K, therefore if we get a positive 50K of release, we’ll look to SELL USD/CAD; on the other hand, if we get a -20K of release, we’ll look to BUY the USD/CAD pair. 

Also it is important to wait unemployment rate release before jumping into a trade, as it is forecasted at 8.5% same as the previous release; we’ll only trade if this number does not conflict with the employment release.  (Conflict meaning if we get a worse Uemployment Rate but with better Employment Changes, or vice versa) If we do get a conflict, it usually becomes a battle between which surprises the market most, so it’s better to do a wait-and-see before you take a trade.  Most likely the release with the most surprise end up driving the market.  If in the event we do get a conflict, it’s probably for the best to stay out of the market with NFP release scheduled at 8:30am, as the NFP is usually much stronger d

DEFINITION

“Measures the change in number of employed people during the previous month. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.”

Related posts:

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2. Canada Employment Changes 12/04/09
3. Canada Employment Changes 11/06/09
4. Trade Plan For Canada Employment Change 06/04/10
5. Forex Trading Strategy For Canada Employment Change 07/09/10
6. Forex News Trading Canada Employment Change 02/04/11
7. Forex News Trading Canada Employment Change 01/07/11
8. Forex News Trading Canada Employment Change 11/05/10
9. Canada Employment Change Forex Trading Strategy 09/10/10
10. Forex News Trading Canada Employment Change 03/11/11

Tagged as: Canada Employment, Canadian Employment, Consumer Spending, currency, economic health, Employment, employment change, Employment Changes, employment release, Employment Sector, GDP, high impact news, Job Creation, Large Portion, news event, NFP, pips, Profit Target, retracement, Unemployment Rate