Trading the News: Canada Net Change in Employment
Updates to Canada’s Employment report may curb the recent rebound in USD/CAD[1] as the economy is expected to add another 19.0K jobs in July.
After delivering a 25bp rate-hike in June, data prints pointing to a strengthening labor market may encourage the Bank of Canada (BoC) to further normalize monetary policy over the coming months as the ‘Governing Council expects that higher interest rates will be warranted to keep inflation near target.’ In turn, Governor Stephen Poloz & Co. may continue to prepare Canadian households and businesses for higher borrowing-costs at the next meeting on September 5, and a positive development may ultimately spark a bullish reaction in the Canadian dollar[2] as it boosts bets for an imminent BoC rate-hike.
However, a below-forecast employment print may fuel the recent advance in USD/CAD as it dampens the outlook for growth and inflation, with the Canadian dollar at risk of facing headwinds over the near-term as market participants push out bets for the next BoC rate-hike. Sign up and join DailyFX Currency Analyst David Song LIVE[3]to cover the updates to Canada’s employment report.
Impact that Canada Employment report has had on USD/CAD during the last print
|
Period |
Data Released |
Estimate |
Actual |
Pips Change (1 Hour post event ) |
Pips Change (End of Day post event) |
|
JUN 2018 |
07/06/2018 12:30:00 GMT |
20.0K |
31.8K |
