• Egypt Girds for Showdown – Wall Street Journal
•Respect for ADP – Brighter Jobs Picture – Wall Street Journal
• European Markets Edge Higher Ahead of U.S. Jobs Data – Financial Times
• Payrolll Gains Probably Picked Up as U.S. Economy Accelerated – Bloomberg
•BOE Faces Close Call as Sentence Keeps Up Rate Fight – Bloomberg
USDCAD: Employment in Canada rose 69.2K in January after climbing 22.0K the month prior amid economists’ expectations of 15.0K to mark the highest level since April 2010. The increase is also the fourth highest reading in the last 5 years. Meanwhile, the unemployment rate rose to 7.8 percent amid economists predications of 7.6 percent as the labor market grew. Taking a look at the breakdown of the report, full time employment increased 31.1K after climbing a revised 40.5K the previous month, while part time employment jumped to 38.0K from Decembers lost of 9.9K. Indeed, the core of the labor force gains came on the back of business, building and other support services.CAD traders should closely monitor bond yields as an increase in yields is usually yen-negative.
Looking ahead, currency traders will place their focus on U.S. nonfarm payrolls which will be released at 13:30 GMT. As of late, economists are expecting payrolls in the world’s largest economy to rise 146K. A reading better than expected may lead the dollar to extend yesterday’s gains as technical studies hint at a dollar reveal to the upside.
Written by Michael Wright, Currency Analyst
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Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly Forecast