By Darrell Martin
It seems that jobs and unemployment rank high in the headlines of the news worldwide. The lack of jobs or the creation of jobs definitely contribute to consumer spending. If the jobs are not available, the economy will suffer as the consumer will only purchase the basic necessities. In times when there are ample jobs consumer spending likewise increases. When consumers have more money, wants instead of only needs, are able to be purchased.
On Friday, July 10, 2015, at 8:30 AM ET, Canada will release five reports that all pertain to Employment. The reports are:
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Employment Change
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Unemployment Rate
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Participation Rate
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Full Employment Change
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Part Time Employment Change
Employment Change
The Employment Change report has the most impact on trading as it measures the change in the number of people employed. The June report reflects the numbers for May which showed an employment increase of 59,000 jobs. This increase caused the unemployment rate to stay at 6.8 percent, where it has remained for four consecutive months. The forecast for this report is -10,000. Should the release come out with a higher than expected reading, it should be regarded as positive for the the CAD. If it is lower than expected, it would be considered negative for the CAD.
Unemployment Rate
Although this report does not have as much impact on your trading as the Employment Change report does, it still ranks as medium in importance. The Unemployment Rate measures those in the workforce who are unemployed and actively looking for employment during the previous month. The charts for this report show that it remains quite constant as is shown by last month’s reading of 6.8 percent and this month’s forecast of 6.9 percent. If the report comes in higher than expected, treat that as negative for the CAD. If the reported numbers are lower regard that as positive for the CAD.
Trading Suggestion
With all reports being released at the same time, it is suggested to use an Iron Condor Strategy using Nadex USD/CAD Spreads. Remember with Iron Condors you want to buy a lower spread and sell an upper spread, each having the same expiration. The floor of the upper spread needs to be equal to the ceiling of the lower spread and close to where the market is at the time you enter the trade. Enter as early as 7:00 AM ET with an expiration of 9:00 AM for a minimum profit of $35. Don’t force the trade. If you cannot find an Iron Condor that fits with these guidelines, then there is no trade. Further insight into Iron Condors can be gained by reading The Awesomeness Of An Iron Condor by Darrell Martin.
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