Canadian Jobs Preview: Loonie set to rise as there is a robust case for an upside surprise
|There is a good case for Canada's job figures to have beaten estimates in January and the loonie has room to rise. However, US Nonfarm Payrolls may prompt choppy price action, Yohay Elam, an Analyst at FXStreet, reports.
Key quotes
“The economic calendar is pointing to a loss of 47,500 positions in January, following a 62,600 decrease in December.”
“An upbeat jobs report may boost the loonie and also unleash more gains related to rising oil prices. The C$ has yet to respond to the gradual increase in crude, a result of high compliance by OPEC+ members and optimism about the impact of vaccines on the global economy. CAD could climb now, in a belated response. “
“It is essential to note that US NFP is published at the same time and could lead to choppy price action in the dollar. On the one hand, upbeat employment figures may boost the dollar as they imply stronger US growth and push the Federal Reserve to tighter monetary policy. On the other hand, they could curb the enthusiasm in Washington for further stimulus. The same considerations are in play in the case of a downbeat NFP, which would equally trigger a choppy reaction.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.