US employment report to steal the show this afternoon
Canada will also report the labour market data
1:30 pm GMT - US labour market report: Since the latest Federal Reserve meeting the importance of employment reports may be a bit lower. In our view, reading between the lines, the Fed is currently willing to accept even higher wage growth before considering rising interest rates. It stems from the fact that the relationship between wage growth and price growth has weakened notably of late. Nevertheless, for markets headlines matter and this is why the NFP is so crucial for traders. The consensus points to a 177k rise in March, wage growth is forecast to have stayed at 3.4% YoY, the jobless rate ought to stay at 3.8% while the labour force participation rate is expected to have held at 65.2%.
1:30 pm GMT - Canadian employment report: There is no doubt that the USDCAD will be most volatile currency pair this afternoon given both countries will release their employment reports. In case of Canada expectations suggest that the economy added 6k new jobs in March after adding as much as 55.9k in February. Keep in mind that these numbers tend to be remarkably volatile from month to month. On top of that, the jobless rate should stay at 5.8%.
Central bankers’ speeches:
8:30 pm GMT - Fed’s Bostic
The USDCAD is bouncing off the important short-term supply area localized slightly above 1.3350. The first target bears may aim for might be found at around 1.33. Source: xStation5