Canada Employment Change 03/12/2010

7:00am CA Employment Change     Forecast 17.5K    Previous 43K       (Unemployment Rate     8.3%)
ACTION:             BUY -15K       SELL 47K            USD/CAD

We’ll be looking forward to trade the Canadian Employment Change report today, which is going to be the first of two high impact news releases for this Friday, with U.S Core Retail Sales being the second event scheduled just 90 minutes later.  We’ll be looking for a deviation of 30K as usual, therefore if we get a positive 47K 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 strength in CAD that we’ve seen recently, market could be pushing USD/CAD toward the support level of 1.0200… a strong breach of this area will heighten speculations for parity with USD (USD/CAD reaching 1.0000 or parity), but overall long-term view is for USD to outperform CAD and make another attempt pushing this pair back to the 1.1000 levels, although parity is a more likely scenario in the short term should 1.0200 support gets taken out. 

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. Canada Employment Change 02/05/10
2. Trade Plan For Canada Employment Change 06/04/10
3. Forex Trading Strategy For Canada Employment Change 07/09/10
4. How to trade Canadian Employment Change 04/09/10
5. Canada Employment Changes 11/06/09
6. Canada Employment Changes 01/08/10
7. Canada Employment Changes 12/04/09
8. Canada Employment Changes m/m 09/04/09
9. Canada Employment Changes m/m 10/09/09
10. US Nonfarm Payroll NFP Employment Change 03/05/2010