Macroeconomic overview
Canada added 48.3k jobs last month, exceeding market expectations for employment growth to be unchanged.
Full-time positions increased by 15.8k. Although that was outpaced by a 32.4k increase in part-time work, investors were encouraged by the decline in the unemployment rate to 6.8%, even as the participation rate edged up.
The service sector added 42.6k jobs in January, with a 20.5k increase in the finance, insurance and real estate industry. Hiring in the transportation and warehousing, and business and support services sectors also rose.
The goods sector created just 5.6k jobs last month, with a 5.2k increase in construction. The natural resources sector added 2.5k positions.
Average hourly wages rose 1% from last January, but average weekly hours for permanent employees declined 0.6% as part-time workers saw fewer hours.
The CAD strengthened against the USD on Friday on rising oil prices and better-than-expected jobs data. Gains for the Canadian dollar came even as the greenback strengthened against a basket of major currencies.
Technical analysis
The overall structure remains bearish. The USD/CAD is still below the descending trendline. The rate is also back below 14-day exponential moving average after a short-lived corrective move in recent days.
Trading strategy
We stay near-term and long-term bearish. The target of our positions is 1.2820.
GrowthAces.com - Daily Forex Trading Strategies
Canada added 48.3k jobs last month, exceeding market expectations for employment growth to be unchanged.
Full-time positions increased by 15.8k. Although that was outpaced by a 32.4k increase in part-time work, investors were encouraged by the decline in the unemployment rate to 6.8%, even as the participation rate edged up.
The service sector added 42.6k jobs in January, with a 20.5k increase in the finance, insurance and real estate industry. Hiring in the transportation and warehousing, and business and support services sectors also rose.
The goods sector created just 5.6k jobs last month, with a 5.2k increase in construction. The natural resources sector added 2.5k positions.
Average hourly wages rose 1% from last January, but average weekly hours for permanent employees declined 0.6% as part-time workers saw fewer hours.
The CAD strengthened against the USD on Friday on rising oil prices and better-than-expected jobs data. Gains for the Canadian dollar came even as the greenback strengthened against a basket of major currencies.
Technical analysis
The overall structure remains bearish. The USD/CAD is still below the descending trendline. The rate is also back below 14-day exponential moving average after a short-lived corrective move in recent days.
Trading strategy
We stay near-term and long-term bearish. The target of our positions is 1.2820.
GrowthAces.com - Daily Forex Trading Strategies
