Canada: how to profit on the next Unemployment report
On Friday, October 6th at 12:30 pm GMT the Statistics Canada will release the monthly Unemployment Rate, covering the number of unemployed workers in the country. It’s the leading indicator in the Canadian economy. The special attention should be paid on the new figure: a lower figure is positive (or bullish) for the CAD, while the increase is negative (or bearish). If the rate remains unchanged, market is likely to be stable.
In total, 3 reports will be published:
- The participation rate - shows a percentage of the total number of people of labour force age (15 years or older) that is in the labour force (either working or looking for a job). Previous percentage - 65,7%.
- The employment rate - is an important economic indicator, which measures the change in the number of employed people in Canada.
- The unemployment rate - demonstrates a number of unemployed workers divided by the total civilian labour force. It’s the most important indicators in the economy of Canada. It indicates a lack of expansion within the Canadian labour market.
How to trade the reports:
This Friday at 12:30 pm GMT traders will be focused on comparing the rates for September with the old ones. The data will be published on the official website of Statistics Canada. USDCAD be highly volatile, so to avoid wasting time on updating the page and switching between the websites, use “News” section on the Ayrex platform directly.
When the employment report is published, check the new rate: a raise means positive changes in consumer spending which stimulates economic growth. The previous number was 22,200.
The most important report is the Unemployment Rate. If it goes up, the Canadian economy and the CAD will be weak/bearish. On the other side, a lower figure will be positive/ bullish for the CAD.
The current unemployment rate is 6,2% - the lowest since the start of the financial crisis in October 2008. Checking with the last year, the number of jobs has increased by almost 388000, with a hike in full-time positions.
Economic Development Minister Brad Duguid said the numbers show the economy continues to grow. “We continue to be on a very positive trend,” he told reporters. Employment in Ontario and Manitoba rose by 26,000 and 4,800, respectively.
However, the positive trend in the Unemployment is currently going hand in hand with the trade deficit and continuing decline in export of metals (especially gold). According to the Statistics Canada, the export has already fallen 4.3% to $46.5 billion. This fall can put a pressure on the overall state of the Canadian economy.