January 3, 2022

Event Trading Guide: Canadian Jobs Report (December 2021)

 Heads up, Loonie traders! We’ve got a top-tier Canadian report lined up later in the week, and this could be an excellent news play.


This Friday at 1:30 pm GMT, Canada will print its employment figures for the month of December.


Planning on trading the event? Here are the points you need to know first:


What happened last time?

November hiring increased by 153.7K vs. 36.5K consensus

This was also significantly higher than the earlier 31.2K increase for Oct

Jobless rate improved sharply from 6.7% to 6.0%

Canada printed an impressive headline employment gain of 153.7K in November last year, surpassing the estimated 36.5K increase and the earlier 31.2K pickup.


This was enough to bring the unemployment rate down from 6.7% to 6.0%, which is pretty close to pre-pandemic levels. This marked the sixth consecutive monthly drop in joblessness and the largest decline since March 2021.


Underlying components of the report showed several positive points, with gains evenly driven by full-time and part-time hiring. Total hours worked also increased, suggesting a return to normal working conditions.

What are traders expecting this time?

Net addition of 24.5K jobs expected for December 2021

Jobless rate to hold steady at 6.0%

Analysts project a slow increase in hiring for December, especially with the Omicron variant throwing a curveball for businesses in the past month.


Weaker than expected jobs growth or a surprise decline in hiring might bring bearish vibes for the Loonie, as this might cast doubts on the BOC’s tightening timeline.


Oh, and don’t forget to consider broader economic themes in your trades!



Market players might just be regaining their bearings this week while some could be stuck in vacation mode, but that doesn’t mean price action will be dull.

Risk-off themes such as concerns about rising Omicron cases and potential lockdowns could also keep a lid on Loonie rallies, along with the lack of any OPEC crude oil output adjustments.


Pay attention to those storylines as well before considering your long or short bias before/after the event.


Still, deciding which currency to trade against the Loonie?


Check out this MarketMilk™ performance ranking of CAD pairs to help you gauge which might be the strongest bullish or bearish rivals


Not feeling confident about trading the event at all? That’s okay, you can always stay in the sidelines and observe the Loonie’s reaction to the release.