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Canada is expected to report a record loss of jobs and a leap in the unemployment rate while the simultaneous release of US jobless claims and the OPEC+ meeting complicate matters, FXStreet’s analyst Yohay Elam reports.

Key quotes

“If Canada loses over a million jobs, the loonie has room to fall in response to the depressing news. If it surprises with a loss of hundreds of thousands of positions, traders will likely conclude that this is only the beginning, and more job losses will come.” 

“Canada’s jobs report is due out at the same time as the US publishes weekly jobless claims. Another disastrous statistics may trigger safe-haven flows into the dollar, thus pushing USD/CAD even higher. A drop in the number of applications could trigger the opposite reaction.”

“Headlines coming out of the OPEC+ meeting, and the preliminary talks, may also whipsaw USD/CAD and skew the reaction to the jobs report.”