Global macro overview for 08/01/2019

The Canadian labor market report for December was characterized by low expectations after a very strong increase in employment in November (94.1k). Last month, 9.3k jobs were delivered - close to the forecast of 10k - as a result of the increase in part-time jobs, which has a negative effect. The unemployment rate remained at 5.6%, but also the wage growth rate has not changed - 1.5%y / y. In both cases an increase of 0.1 percentage point was assumed.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. Canadian data cannot compare to the US job report and USD / CAD report and jumped from 1.3435 to 1.3470, although investors quickly switched to extinguishing increases. Currently, the market is trading around the level of 1.3273 as the downtrend is continuing. The next target is seen at the level of 1.3253 which is a very important support for the bulls. Any further breakout below this level would result in the downtrend extension towards the level of 1.3218. Please notice the market conditions are now extremely oversold despite the very weak and very negative momentum.

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