Canadian dollar Weakens Noticeably on Friday ahead of Canada’s Job Results, 35+ PIP Volatility Likely in CAD Parity; March 12, 2021
Canada’s Employment Change Results
Today Canada will release job results at 1330 GMT/1900 IST. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. On the other side, unemployment rate is generally viewed as a lagging indicator; the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
Let’s see how CAD has reacted during the previous data release:
(Note – Important to note here that, most of the time Canada and U.S. have released the Fundamental indicators at the same time, and today also Canada’s Job data is scheduled with U.S.’s PPI data and therefore parity may give two side movement according to the actual data.)
USD/CAD: The Canadian dollar trades marginally lower on Friday and touches 1.2573 mark in European hours. The pair made intraday low at 1.2524 mark. A day and H1 chart with triple EMA confirms the bearish trend for the time being. A sustained close above 1.2565 on H1 chart requires for the upside rally. Alternatively, a consistent close below 1.2524 will check key supports too.
Key Resistances: 1.2578, 1.2610, 1.2645
Key Supports: 1.2524, 1.2488, 1.2465
Take a look and do trade wisely!