Each the U.S. and Canada publishing their newest labor market information means we gotta take a better take a look at USD/CAD!

Will right now’s headlines preserve the pair’s short-term downtrend?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out GBP/CAD’s short-term vary forward of BOE’s coverage resolution. You should definitely try if it’s nonetheless a great play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Recent Market Headlines & Financial Knowledge:

Financial institution of England held the official financial institution charge at 5.25% with a vote of three to hike and 6 to carry; signaled as soon as once more that it’s a lot too early to consider charge cuts

Weekly U.S. Preliminary jobless claims: 217K (210K forecast; 212K earlier); persevering with claims rose to 1.79M vs. 1.727M earlier

U.S. Unit Labor Prices fell by -0.8% q/q in October vs. +3.2% q/q rise in Q2; productiveness rose by 4.7% y/y vs. 3.6% y/y prior

U.S. Manufacturing facility Orders for September spiked by 2.8% m/m (0.8% m/m forecast; 1.0% m/m earlier)

Challenger U.S. Job cuts for October 2023: 36.84K vs. 47.45K in September

SNB introduced the December 1 begin of its central financial institution digital forex (CBDC) pilot venture involving 4 different business Swiss banks

China’s Caixin providers PMI picked up from 50.2 to 50.4 in October; “Subdued exercise ranges coincided with an additional slowdown in new order development”

Value Motion Information

Overlay of NZD vs. Main Currencies Chart by TradingView

Like in most U.S. NFP Fridays, foreign exchange worth motion was restricted to tight ranges forward of the U.S. session. It didn’t assist that the Japanese market was out on a financial institution vacation.

The New Zealand greenback did see extra volatility in comparison with its friends, beginning with a pointy drop across the time China printed a light enchancment (however nonetheless worse than anticipated) Caixin providers PMI.

NZD shortly lined from its bearish spike, nonetheless, and cautious optimism quickly introduced the comdoll within the inexperienced. It’s presently posting the fewest good points in opposition to EUR and AUD whereas gaining probably the most in opposition to CAD, USD, and JPY.

Upcoming Potential Catalysts on the Financial Calendar:

U.Ok.’s closing providers PMI at 9:30 am GMT
Eurozone’s unemployment charge at 10:00 am GMT
Canada’s labor market information at 12:30 pm GMT
U.S. NFP studies at 12:30 pm GMT
U.S. ISM providers PMI at 2:00 pm GMT

Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

USD/CAD 15-min Foreign exchange Chart by TradingView

In just a few hours, Uncle Sam will publish its intently watched October non-farm payrolls (NFP) numbers. However Canada is ALSO dropping its labor market information.

This is the reason we’re holding shut tabs on USD/CAD, which is forming decrease highs and decrease lows within the 15-minute time-frame.

Will right now’s headlines hold the pair in its descending channel sample? Or will we see an upside breakout right now?

The U.S. NFP Report Occasion Information identified that the markets expect extra of the “slowing however strong” labor market tendencies however that the report has additionally shocked to the upside fairly typically in the previous few months.

In the meantime, merchants see weaker labor information in October in comparison with September.

Stronger-than-expected U.S. labor market information might bump USD/CAD above its channel sample and perhaps push it to the Pivot Level (1.3780) line if not the R1 (1.3820) earlier inflection level.

But when the U.S. studies miss, Canada’s labor information launch surprises to the upside, or if merchants deal with extending this week’s anti-USD themes, then USD/CAD might take one other journey right down to its intraweek lows. It might even revisit the 1.3700 psychological degree relying on the post-report momentum!

Keep in mind that the U.S. NFP report tends to supply wild swings among the many main USD pairs throughout the launch. Think about placing positions on after the calendar occasions to attenuate your dangers of getting stopped out due to wild worth swings!