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USD/CAD binary signal - Canada Unemployment Data - 11 May 2018

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Expiry Time: 
21:00 GMT
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Statistics Canada will be releasing the monthly labor market statistics today at 12:30 GMT. The data will cover the period of April. According to the economists' polled, Canada's unemployment rate is expected to remain unchanged at 5.8% for April. The average number of jobs added to the economy is expected to show a 19.5k increase during the month.

This marks a rather slower pace of job gains compared to March's data where the Canadian economy added 32.3k during the month. Still, the overall trend in Canada's labor market remains robust and adds to the underlying bullish fundamentals.

The Bank of Canada had left interest rates unchanged at the meeting earlier this month. However, the central bank left the option for rate hikes for later in the year. The markets are expecting to see at least two more rate hikes from the Bank of Canada this year. A lot will depend on how the jobs report will come out for April. A better than expected jobs report will no doubt cement expectations that the BoC could hike rates as early as June BoC meeting.

The labor market data comes ahead of next week's inflation report. Previously, Canada's GDP was seen rising at a healthy pace in the first quarter of the year which remains with the consistent view of an uptick in the Canadian economy.

Based on the above, today's binary options signal is USDCAD. The currency pair posted strong losses during the past few weeks and price action is seen falling back to the support level of 1.2750. In the near term, we expect to see a modest rebound in prices.

Therefore, it is ideal to purchase daily CALL options at 1.2770 for a 21:00 GMT expiry time. With price at support, we expect USDCAD to close higher on the day.

binary options signal usdcad 11 may 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.