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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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USDCAD Prepares for Double Employment Figure Release

The USDCAD exchange rate is looking for support ahead of a double employment figure release.

The US and Canadian economies will both see the release of employment numbers for December.

USDCAD - Daily Chart

USDCAD - Daily Chart

USDCAD is at 1.3570, caught in a more extensive range between the 1.3225 and 1.3835 marks.

The Canadian economy is expected to see employment at a low improvement of 8,000 jobs, with a rise in the unemployment rate to 5.2%. However, full-time employment is expected to drive the headline due to the scarce labour supply. It is also possible that the country will see a slight rise in wages due to inflation, while hours worked should be boosted. 

The US employment release is expected to show a gain of 200,000 jobs in December after last month’s 263,00. The job market activity continues to establish a solid return, helping to relieve recession fears. The unemployment rate is expected to stay steady at 3.7%. 

Another release for the US will be the ISM Non-Manufacturing PMI numbers, which are expected to dip to 55 from 56.5. That is still in expansion territory and could boost the dollar after a second month of weaker employment numbers. 

On Thursday, the US dollar was boosted by a better-than-expected ADP employment number with a 235,000 print. That hints the Non-Farm payrolls number on Friday could also be better, and the dollar was supported. 

Continuing jobless claims for December were also lower, dipping to 1694k from 1718k. Despite aggressive rate hikes this year, the Federal Reserve would be impressed at the economy’s resilience in jobs. 

The employment figures tomorrow could see the USDCAD move to test one of the range levels over the coming week or two.

Last Updated: 06/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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