Canadian jobs data overview
Statistics Canada will publish its labor market figures for the month of July, later during the early North-American session at 1230 GMT. Consensus estimates point to a downtick in the unemployment rate to 5.9% from 6.0% previous and the number of employed people are seen rising by 17.0K, as compared to 31.8K in the previous month.
In view of strategists at TD Securities, “Full-time employment should lead job growth while a moderation in labor force growth will allow the unemployment rate to edge lower to 5.9%.”
How could it affect USD/CAD?
Yohay Elam, FXStreet's own Analyst explains: “The 50-day Simple Moving Average capped an initial attempt to move higher. The pair is trading above the 200-day SMA. All in all, the signals are mixed, and the pair is looking for a direction.”
He further adds, “1.2960 was a low point in early August. Further down, we find 1.2860 as a swing low in early June and much lower, 1.2730 that was a low point back in May. 1.3100 remains a battle line. Further up, 1.3220 capped the pair in mid-July. 1.3295 was a stubborn cap later in July, and 1.3380 was the peak in June.”
About Canadian jobs report
The employment report released by the Statistics Canada is a leading indicator for the Canadian Economy. A rise in the employment change/fall in the unemployment rate has positive implications for consumer spending, which stimulates economic growth and is seen as positive (or bullish) for the CAD, while the opposite could negatively impact the domestic currency.
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