Canada Employment Change 02/05/10

7:00am CA Employment Change     Forecast 15.2K    Previous -2.6K       (Unemployment Rate     8.5%)
ACTION:             BUY -15K       SELL 45K            USD/CAD

We’ll be focusing on the Canadian Employment Change report 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 as usual, therefore if we get a positive 45K of release, we’ll look to SELL USD/CAD (or even EUR/CAD); on the other hand, if we get a -15K of release, we’ll look to BUY the USD/CAD pair.

Because of the general low liquidity condition before the NFP release, it is important to wait for all numbers to be released prior to taking a trade, and that includes the unemployment rate, which is forecasted at 8.5% same as the previous release; we’ll only take a 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. 

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:

1. Trade Plan For Canada Employment Change 06/04/10
2. Forex Trading Strategy For Canada Employment Change 07/09/10
3. Forex News Trading Canada Employment Change 02/04/11
4. Canada Employment Change Forex Trading Strategy 09/10/10
5. Forex News Trading Canada Employment Change 11/05/10
6. Forex News Trading Canada Employment Change 01/07/11
7. Canada Employment Changes 01/08/10
8. Forex News Trading Canada Employment Change 03/11/11
9. Forex Trade Plan & Video For Canada Employment Change 08/06/10
10. Canada Employment Change 03/12/2010

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