Canada Employment Changes m/m 10/09/09

7:00am (NY Time) CA Employment Change   Forecast 5.0K  Previous 27.1K
ACTION: USD/CAD       SELL +30K     BUY -20K

We will focus on the Canadian Employment Changes today, which is expected at +5.0K this month. If we get a surprise release of of at least 25K, making it at +30k or -20K, we can conservatively expect the market to move 40 pips within the hour, based on a historical probability of about 80% of chance.

Even if our BUY/SELL figure is hit, it is still important to keep an eye on the Unemployment Rate, which is expected at 8.8%.  If it does not conflict with the Employment Release, then we’ll follow our trade plan, and in the event of a conflict, we will stay out of the market.

Remember CAD is sometimes a slow moving pair and sometimes it won’t retrace much.  So consider your entries and take small profits as we do have more news coming a at 8:30am.

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

Tagged as: economic health, Employment, employment change, Employment Changes, employment release, Employment Sector, pips, retracement, trade, Unemployment Rate