How could the data affect USD/CAD?
Yohay Elam, FXStreet's own analyst offered his take on the possible market reaction to the employment details: “If Canada gained around 20,000 positions last month, the response would likely be more muted, allowing wage growth to have an outsized impact. IF paychecks remain around November's levels, the C$ still has room to edge higher given the positive bias. The probability is medium.”
“There is a good case for a considerable rebound in jobs, better than average estimates. In this scenario, the Canadian dollar has significant room to rise, as it already enjoys an uptrend. The probability is high,” he added further.
Yohay also explains the scenario, wherein an unlikely disappointment – having a low probability – may send the C$ plunging. “A meagre increase in jobs cannot be ruled out, nor can a third consecutive month of losses. In this case, the loonie may find itself in a lonely position, falling even if other currencies gain against the greenback amid a weak US labor market report. The probability is low.”


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