Canada's job hiring has increased again.

The Canadian dollar has strengthened slightly after weakening in the past week. Although inflation has not decreased as expected, strong labor data in Canada has started to give investors a more positive outlook. However, Canada's economy continues to be pressured as the Bank of Canada (BoC) policymakers have indicated that there is still a possibility of increasing inflation, necessitating the maintenance of high interest rates, which could hinder economic growth.

The increase of over 37,300 jobs in January is another positive factor demonstrating the adaptability of each company. Most of the increased hiring comes from part-time jobs, notably in various industries, especially in manufacturing related to increased wholesale and retail sales by over 31,000 positions. However, there has been a decrease in hiring in accommodation and food services.

Canada's unemployment rate decreased to 5.7% in January, marking the first decline in the past year, with nearly 20,000 fewer unemployed people, totaling 1,243,800, especially due to the decrease in youth unemployment. This has led investors to relax concerns about the high interest rates delaying Canada's economy.

Foreign investors increased their net investment in Canadian securities by $10.44 billion in December, mostly in debt securities, particularly private sector debt securities, which increased by $11.0 billion. Additionally, foreign investors have purchased $5.3 billion worth of government bonds.

Wholesale trade sales in Canada increased by 0.3% to $82.9 billion in December. The increase was mainly in personal and household goods, as well as food and beverages, by over 2%. However, sales related to motor vehicles and parts continued to decline due to increased consumer financial burdens caused by interest rate hikes.

The yield on Canada's 10-year government bonds increased by more than 3.55%, despite the Canadian economy showing signs of slowing down. However, the return of strong labor market data has put pressure on the BoC to lower interest rates to stimulate the economy, although the BoC remains adamant about maintaining interest rates to combat inflation pressures.

Techical analysis data (5H)

Resistance: 1.3506, 1.3528, 1.3506

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 1.345 - 1.3467 but cannot break the support at 1.3467, you may set a TP at approximately 1.3528 and SL at around 1.3428 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 1.3506 - 1.3528, you may set a TP at approximately 1.3506 and SL at around 1.345 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 1.3506 - 1.3528 but cannot break the resistance at 1.3506, you may set a TP at approximately 1.345 and SL at around 1.3506 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 1.345 - 1.3467, you may set a TP at approximately 1.3428 and SL at around 1.3528 or according to your acceptable risk.

Pivot point February 20, 2024 08:13 PM. GMT+7