We´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.
Note: Last month’s release was a conflict with the US release but we saw strength in the CAD, but this is perhaps a combination of market sentiment and crude oil price trends, and more of an exception than the rule when it comes to trading 2 high impact releases together.
8:30am (NY Time) CAD Employment Change Forecast 14.6K Previous 45.3K
The Trade Plan
I´ll also pay close attention to the unemployment rate, which is expected at 6.6%. 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.”
CA Employment Change | August 4, 2017 | Forex Trading
July 31, 2017 by Leave a Comment