Tomorrow, Friday April 9, like every month, the employment data for Canada will be published. Data that generates expectations about the current economic context and will affect the USDCAD cross.
Statistics Canada will report the evolution of employment in the last month. Starting with the variation in employment, the last month it was more optimistic, since the result was higher than the forecasts, giving a total of 259.2K,. For the month of March, the results are expected to be 101.5K and a decrease in the unemployment rate.
Regarding the unemployment data, positive results are expected, sustaining a downward trend in people who are unemployed. The previous month, it sustained a decline from 9.4% to 8.2%. For the month of March, the projections are for a slight decrease towards 8% unemployment.
This data shows results on consumption and consequently the impact on economic growth.
For the USD CAD cross, it is under pressure since these data generate expectations and data higher than those projected on unemployment, it may be negative for it. Even so, the Canadian currency is boosted due in part to the price of oil. Oil makes up a large percentage of the country’s exports, and in recent days it has behaved under market pressure, generating volatility in its price and, consequently, in the Canadian dollar.
Canadian economic performance is showing more optimal results than expected. For example, the PMI published in the last hours, increased towards 72.9, being one of the highest levels in years.
USDCAD is in the buy preference zone at 1.2571, with sell up to 1.2577.