On July 8, the first Friday of the month, at 15:30 Moscow time, the next update of the U.S. and Canadian labor market statistics is expected, including: Nonfarm Payrolls (NFP), Canada Employment Change, as well as the U.S. Unemployment Rate and Canada Unemployment Rate.
It means that a new prospect to make money off trading the USDCAD pair is about to appear again.
According to the forecasts, the employment in the U.S. and Canada is projected to decline, while the unemployment rates will likely remain the same.
So, the possible options for entering and exiting the market are:
1. If the forecasts turn out to be true, it’s a good practice to work on the rollbacks, using the data of the NFP change.
So, place a pending order SellLimit at the distance of 0.1% from the price during the statistics update.
A Take profit order should be at the price level or a bit higher in due course of data release, while a Stop Loss order is also placed higher than the previous day maximum.
In case the pending order for a position opening isn’t executed within 8 hours, delete it.
If the Take profit order isn’t executed within 8 hours, close the position.
2. In case there are multidirectional changes in the employment, capture the USDCAD pair movement in the first 15 minutes (meaning 0.1-0.2% from the price at the statistics update).
A Stop Loss order is placed above the maximum / below the minimum of the previous day.
3. In case there are multidirectional changes in the unemployment rate, open the position at the release of statistical data, and close after 3 or 8 hours (at 18:30 or 23:30 Moscow time). The expected profit is 0.1-0.2% from the price at the moment of data update.
A Stop Loss order is placed above the maximum / below the minimum of the previous day.
Don't forget that volatility tends to increase due to the publication of NFP data!
It is necessary to be reckoned with the spread and follow the capital management rules!
Regarding the fundamentals, nowadays the Canadian economy looks way more attractive compared to the U.S., which favors a decline in the USDCAD and implies short positions.
Attention!
Trading on financial markets involves high levels of risk and can result in the capital investment loss. The MarketCheese team shall not be liable for possible loss of your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
