Canada Employment Report Preview (JUL 2024)

canada_04-LONC02G510KMD6R
NA-meet-our-team-David-Song-125x125
By :  ,  Strategist

Canada Employment

The update to Canada’s Employment report showed a 1.4K contract in June versus forecasts for a 22.5K rise, while the jobless rate widened to 6.4% from 6.2% during the same period.

Canada Economic Calendar – July 5, 2024

Canada Economic Calendar 08082024 

FOREX.com Economic Calendar

A deeper look at the report showed ‘there were 1.4 million unemployed people in June 2024, an increase of 42,000 (+3.1%) from the previous month,’ while Average Hourly Wages climbed to 5.6% From 5.2% in May.

Join David Song for the Weekly Fundamental Market Outlook webinar. David provides a market overview and takes questions in real-time. Register Here

USD/CAD Chart – 15 Minute

USDCAD 15-Minute Chart 08082024

Chart Prepared by David Song, Strategist; USD/CAD Price on TradingView

The initial reaction to Canada’s employment report was rather limited as USD/CAD was little changed following the release. Nevertheless, USD/CAD trade higher during the session to close the day at 1.3653.

Canada Economic Calendar 08082024a

Looking ahead, Canada is projected to add 22.5K jobs in July following the 1.4K contraction the month prior, while the jobless rate is expected to increase to 6.5% from 6.4% during the same period.

A rebound in Canada employment may push the Bank of Canada (BoC) to the sidelines following the back-to-back rate cuts, and a positive development may spark a bullish reaction in the Canadian Dollar as raises the central bank’s scope to retain the current policy at the next meeting on September 4.

However, another decline in Canada Employment may encourage Governor Tiff Macklem and Co. to pursue a more accommodative policy, and signs of a weakening labor market may produce headwinds for the Canadian Dollar as it fuels speculation for lower interest rates.

Additional Market Outlooks

US Dollar Forecast: EUR/USD Stalls Ahead of January High

AUD/USD Forecast: RSI Falls Back into Oversold Zone

US Dollar Forecast: USD/JPY Selloff Pushes RSI into Oversold Zone

US Dollar Forecast: EUR/USD Opening Range for August in Focus

--- Written by David Song, Strategist

Follow on Twitter at @DavidJSong

Get our guide to central banks and interest rates in H2 2024

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar