Solid News

Canadian Labor Market Continues to Recover

8/26/2022 1:39 PM

The Canadian currency is trying to win back losses against the US dollar against the backdrop of positive macroeconomic statistics from the national labor market. Now the USD/CAD pair is correcting downwards, trading around 1.2954.

As Statistics Canada reported yesterday, employment in the service sector rose by 0.6% in June, and almost all areas showed positive dynamics: education, the indicator added 1.9%, food – 1.3%, and healthcare – by 0.4 %. During this period, the total number of vacancies increased by 3.2%, which means the appearance for the third consecutive month of more than 1.0M additional unfilled positions and, as a result, an increase in demand for labor by 1.4% compared to May of this year – to 17.7M. The most demanded are still specialists in the healthcare sector, where the rate of posted vacancies rose by 40.8% YoY and by 0.2% MoM. These data indicate that the Canadian labor market is starting to grow rapidly, which will undoubtedly positively impact the national economy.

The US dollar continues its strong momentum and is trading around 108.500 in the USD Index, having almost no reaction to the data on US gross domestic product (GDP) in the second quarter, according to which the economy slowed down by 0.6%. Possibly, the market's poor reaction is related to data on the labor market, where the number of Initial Jobless Claims fell to 243.0K from 245.0K a week earlier.


On the daily chart of the asset, the trading instrument is moving within a wide ascending channel with dynamic boundaries of 1.2600–1.3200 towards the support line. Indicator Alligator's EMA oscillation range began to narrow, and the histogram of the AO oscillator is forming downward bars in the buying zone.

Resistance levels: 1.2990, 1.3222. | Support levels: 1.2893, 1.2727.



Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742


Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2022 SolidECN.com