Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US NFP Report for August is predicted to show 170K job additions and an unemployment rate of 3.5%. Forex traders can compare this to the US NFP Report for July, which showed 187K job additions and an unemployment rate of 3.5%. Private Payrolls for August are predicted to show 150K job additions and Manufacturing Payrolls 0K job additions. Forex traders can compare this to Private Payrolls for July, which showed 172K job additions, and Manufacturing Payrolls, which showed 2K job losses. The Average Work Week for August is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for July, reported at 34.3 hours. Average Hourly Earnings for August are predicted to increase by 0.3% monthly and 4.4% annualized. Forex traders can compare this to Average Hourly Earnings for July, which rose 0.4% monthly and 4.4% annualized. The Labor Force Participation Rate for August is predicted at 62.6%. Forex traders can compare this to the Labor Force Participation Rate for July, reported at 62.6%. Government Payrolls for August are predicted to show 2K job losses and the U6 unemployment rate at 6.8%. Forex traders can compare this to Government Payrolls for July, which showed 15K job additions and the U6 unemployment rate of 6.7%.
The US S&P Global Manufacturing PMI for August is predicted at 47.0. Forex traders can compare this to the US S&P Global Manufacturing PMI for July, reported at 49.0.
US Construction Spending for July is predicted to rise 0.5% monthly. Forex traders can compare this to US Construction Spending for June, which rose 0.5% monthly.
The US ISM Manufacturing Index for August is predicted at 47.0, and ISM Prices Paid at 43.9. Forex traders can compare this to the US ISM Manufacturing Index for July, reported at 46.4, and ISM Prices Paid at 42.6. ISM Employment Index for August is predicted at 44.2. Forex traders can compare this to the ISM Employment Index for July, reported at 44.4.
The Canadian GDP for June is predicted to decrease by 0.2% monthly. Forex traders can compare this to the Canadian GDP for May, which increased 0.3% monthly. The Canadian GDP for the second quarter is predicted to increase 0.3% quarterly and 1.2% annualized. Forex traders can compare this to the Canadian GDP for the first quarter, which rose 0.8% quarterly and 3.1% annualized.
The Canadian S&P Global Manufacturing PMI for August is predicted at 49.2. Forex traders can compare this to the Canadian S&P Global Manufacturing PMI for July, reported at 49.6.
The forecast for the USD/CAD remains bearish after this currency pair failed to extend its advance. Price action trades below its descending Tenkan-sen but above its flat Kijun-sen suggesting volatility could increase. Traders should also monitor the CCI as it approaches extreme oversold territory with more downside potential. Can bears maintain control over the USD/CAD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/CAD remain inside the or breakdown below the 1.3500 to 1.3555 zone, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Short position
- Entry Level: Short Position @ 1.3520
- Take Profit Zone: 1.3320 – 1.3370
- Stop Loss Level: 1.3600
Alternative scenario:
Should price action for the USD/CAD breakout above 1.3555, PaxForex recommends the following trade set-up:
- Time frame: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3600
- Take Profit Zone: 1.3460 – 1.3700
- Stop Loss Level: 1.3555
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