Tomarrow, the 4th of November at 15:30 Moscow time we are waiting again for the update of the statistics on the labor market of the USA and Canada, namely Nonfarm Payrolls (NFP) and Employment Change in Canada, and also about the level of unemployment in USA and Canada.
And again, we have a chance to make money with a USDCAD pair.
According to forecasts, employment of both countries will decrease, unemployment will increase.
Possible options to enter and exit the market:
1. Employment in the US will decrease, while in Canada it will increase.
We trade on the differently directed changes and catch the decrease of the USDCAD pair in the first 15 minutes (expected profitability is 0.1-0.2% and more).
Place the protection order Stop-Loss higher than the maximum of the previous day.
2. In case of the differently directed changes in unemployment levels, i.e. if the unemployment decreases in USA and increases in Canada, we open the long position at the moment of statistics’ updating (open the short position, if the unemployment increases in the USA and decreases in Canada), open it after 3 or 8 hours (at 18:30 or 23:30 Moscow time). The expected return of the trade is 0,1-0,2%.
Place the Stop-Loss order below/above the level of the previous day.
3. Employment and/or unemployment in both countries increase or decrease.
Abstain from entering the market.
Regarding the fundamental aspects, today the US economy looks much more attractive compared to Canada, due to the tight monetary policy of the Fed, which the central banks of other countries do not keep up with, which favors the growth of the USDCAD pair and implies long positions in the medium term.
Don’t forget usually the volatility strongly increases during the publication of NFP data!
Also, remember about the spread and money management rules!
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