CA Employment Change | April 7, 2017 | News Trading

Event Details At-A-Glance:
19.4K5.7K15.3K25K

Canada Employment ChangeWe´ll be getting the Canadian Employment Change release figure along with the US Nonfarm Payroll Report.  Since 95% of the market is paying attention to the NFP, I’d recommend that we do the same.  If you are planning to trade USDCAD, then make sure there is no conflict and if we are lucky, with both currencies going in the same direction, you could see plenty of market moves…

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8:30am (NY Time) CAD Employment Change Forecast 5.7K Previous 15.3K
8:30am (NY time) CAD Unemployment Rate Forecast 6.7% Previous 6.6%

DEVIATION: 25K (BUY CAD @ 30.7K / SELL CAD @ -19.3K)

The Trade Plan
The Canadian Employment Change report will be released at 8:30am sharp today. What I am looking for is a minimum deviation of around 25K, or the difference between the Forecast number (5.7K) versus the actual release number; if we get a positive 30.7K of release, we should see demand for the CAD rise, therefore we should BUY CAD against weaker currencies at the time; however, if we get a negative deviation, such as -19.3K or worse, we should see some weakness in the CAD, and that will be my cue to SELL CAD against stronger currencies at the time.

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I´ll also pay close attention to the unemployment rate, which is expected at 6.9%. As long as this number does not conflict with the Employment Changes, we should follow the direction of the news release. If we get a conflict, such as better Employment Changes but higher Unemployment Rate, then we´ll need to look at the context of the market before taking the trade.

I´ll be looking to trade this release using my after-news Retracement Method. To find out more about my trading system, read: http://www.currencynewstrading.com/how-to-get-started-with-news-trading/

I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: USDCAD.

 

 

   

Outlook Score Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.

DEFINITION “Measures the change in number of employed people during the previous month. A rising trend has a positive effect on the nation´s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.”

Thanks,




Currency Pair Stats
Pair2H50+2H50RangeDirectionPN30PN60PN90Spike
EURCAD88.7%75.0%11094.8%23354054
USDCAD83.5%79.2%8094.8%17253043
2H-50+ = % of 50+ pips move in 2hrs. | 2H-50 = % of 50+ pips move in 2hrs. for the last 2 years | Range = average range in 2 hrs. | Direction = % match following news direction | PN30 / PN60 / PN90 = average pips move before news release in 30, 60, or 90 mins. period | Spike = initial average spike
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

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