Intraday Market Thoughts

Canada's Jobs "Correction"

by Ashraf Laidi
Aug 15, 2014 15:48

As Canada corrects its previously released July jobs report with a massive 41.7K rise in net employment vs. expectations of 20K, and a decline in the unemployment rate to 7.1% from 7.2%, the loonie is back to its winning ways. USDCAD remains supported at the key 1.0860s (confluence of 100 & 200 DMA), while CADJPY shoots back up towards its 55-DMA. We issue a new Premium long in a CAD cross after our Monday short in GBPAUD reached its 1.7890 target, producing a 250-pip gain in 4 days. Meanwhile, stocks continue rallying, gaining for the 3rd straight day, while yields plunge (10-yr at 2.35%), down for the 3rd straight day and extending the socks/yields divergence to 17-month highs. There are currently 9 existing (open) Premium trades, with today's CAD cross being the latest addition. Full details in the Premium Insights.

 
 

Latest IMTs