TRENDING:

XAU/USD

Silver

Canadian Unemployment Rate came in at 6.9% in October

FXStreet Team FXStreet

Canada’s Unemployment Rate ticked lower to 6.9% in October (from 7.1%), coming in below analysts' expectations, according to Statistics Canada. In addition, the Net Change in Employment increased by 66.6K individuals (from 60.4K), while the Participation Rate improved to 65.3% (from 65.2%). Finally, Average Hourly Wages, a proxy of inflation, rose by 4% over the last twelve months.

Market reaction

The Canadian Dollar (CAD) picks up pace and drags USD/CAD back below the 1.4100 support in the wake of the release, reversing a six-day consecutive daily advance.

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.19%	0.00%	0.06%	-0.19%	-0.16%	0.16%	-0.20%
EUR	0.19%		0.18%	0.25%	-0.00%	0.02%	0.34%	-0.02%
GBP	-0.00%	-0.18%		0.06%	-0.21%	-0.16%	0.16%	-0.20%
JPY	-0.06%	-0.25%	-0.06%		-0.22%	-0.20%	0.10%	-0.24%
CAD	0.19%	0.00%	0.21%	0.22%		0.02%	0.32%	-0.01%
AUD	0.16%	-0.02%	0.16%	0.20%	-0.02%		0.32%	-0.03%
NZD	-0.16%	-0.34%	-0.16%	-0.10%	-0.32%	-0.32%		-0.36%
CHF	0.20%	0.02%	0.20%	0.24%	0.01%	0.03%	0.36%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

This section below was published as a preview of the Canadian labour market report for October at 11:38 GMT.

Canada Employment Overview

The Canadian labour market data for October is due for release today at 13:30 GMT. Statistics Canada is expected to show that employers laid off 2.5K workers, against hiring of 60.4K job-seekers in September.

Signs of slowdown in the job market are expected to be unfavorable for the Canadian Dollar (CAD), given that cooling labor market conditions prompt the need of more interest rate cuts by the Bank of Canada.

Meanwhile, the Canadian Unemployment Rate is expected to remain steady at 7.1%. This is the highest level seen since July 2021.

Apart from the job data, investors will focus on Average Hourly Wages, an economic indicator that reflects chance in wage growth. In September, the wage growth measure rose by 3.6% on an annualized basis.

How could the Canadian employment data affect USD/CAD?

The USD/CAD pair trades in a tight range around 1.4100 ahead of the Canadia labour market data release. Broadly, the Loonie pair is bullish as it holds the breakout of the previous resistance zone placed in a range between 1.4016-1.4080.

The upward-sloping 20-day Exponential Moving Average (EMA) near 1.4027 suggests that the near-term trend is bullish.

The 14-day Relative Strength Index (RSI) trades around 70.00, indicating a strong bullish momentum.

Looking up, the USD/CAD pair could rise towards the round-level figure of 1.4200 and the April 9 high of 1.4274 if it breaks above the November 6 high of 1.4140

On the flip side, the asset could slide towards the round level of 1.3600 and June 16 low of 1.3540 if it breaks below the August 7 low of 1.3722.

Economic Indicator

Net Change in Employment

The Net Change in Employment released by Statistics Canada is a measure of the change in the number of people in employment in Canada. Generally speaking, a rise in this indicator has positive implications for consumer spending and indicates economic growth. Therefore, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.

Why it matters to traders?

Canada’s labor market statistics tend to have a significant impact on the Canadian dollar, with the Employment Change figure carrying most of the weight. There is a significant correlation between the amount of people working and consumption, which impacts inflation and the Bank of Canada’s rate decisions, in turn moving the C$. Actual figures beating consensus tend to be CAD bullish, with currency markets usually reacting steadily and consistently in response to the publication.

Author

FXStreet Team

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.