Canada’s labor market recovery is expected to regain traction in February as a less disruptive covid situation in winter and vaccine progress has improved the prospects for a quick economic turnaround.
Heading towards the Canadian jobs data release this Friday at 13:300 GMT, USD/CAD bounces off a monthly low of 1.2520.
Key quotes
“Canadian jobs report is likely to show that the economy added 75K jobs in February when compared to 212.8K jobs lost in the first month of 2021. The nation is expected to snap two-straight months of job losses.”
“The participation rate is seen a tad higher at 64.8% in the reported month vs. 64.7% recorded in January, which is likely to send the unemployment rate lower to 9.2% last month. The jobless rate climbed to 9.4% in January.”
“If the jobs data beat estimates, we could see the USD/CAD pair extending its five-day bearish momentum towards 1.2500, below which the February 25 low at 1.2468 could be aimed for.”
“If the data disappoints, markets could take that as an excuse to unwind their long CAD positions, which could drive USD/CAD back towards 1.2670 levels.”
“The reaction to the data will also depend on the movement in the US bond market and the oil-price dynamics.”
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