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Analysts Predict Poor Data on the Canadian Labor Market

2/10/2023 12:35 PM

The USD/CAD pair continues its local flat dynamics at 1.3463.

This year's first data on the Canadian labor market, which will be published tonight, may show a slowdown in employment growth to 15.0K from 104.0K in December, and the share of the economically active population may decline from a local peak of 65.0%. Analysts suggest an increase in the unemployment rate to 5.1% from 5.0% in December, which will not benefit the downtrend in the pair.

The US dollar consolidated around 103.200 in the USD Index. Yesterday's data on initial jobless claims disappointed investors: after Friday's growth in employment, a decrease in the number of applications for benefits was expected, but the figure reached 196.0K, up from 183.0K last week, and the total number of citizens receiving assistance from the state rose to 1.688M people from 1.650M earlier.

On the daily chart, the trading instrument is moving within the global Triangle pattern with dynamically narrowing boundaries 1.3580–1.3250, rising towards the resistance line.

Technical indicators signal a local correction: the range of EMA fluctuations on the Alligator indicator is narrowing, and the AO histogram forms ascending bars, rising in the sell zone.

Resistance levels: 1.3500, 1.3670. | Support levels: 1.3390, 1.3250.

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