U.S./Canada: Caution Over Employment Data Results

U.S./Canada: Caution Over Employment Data Results

06.08.2021

Yesterday, stock prices rose in the U.S. market, creating a risk-on environment characterized by rising stocks, interest rates, and oil prices.The U.S. Challenger job cuts for July, released yesterday, came in at 18,900, down about 7.5% from the previous month and marking the lowest level in 21 years. Despite concerns that job cuts could reduce labor market flexibility, stock prices remained firm. Bonds were sold off, and the yield on the 10-year U.S. Treasury note recovered to the 1.2% range, currently standing at around 1.23%.

The U.S. dollar has risen as the yield on the 10-year U.S. Treasury note has rebounded. The USD/JPY pair has broken above the resistance zone formed by the 200-period simple moving average (SMA) on the hourly chart and is currently trading around 109.8. While cross-yen pairs are generally trending higher, the AUD/USD pair, in particular, is showing stronger upward momentum and is trading within a range, similar to yesterday. The EUR/USD pair is trending lower and is currently trading around 1.182.

Today's economic indicators include German industrial production at 3:00 PM and Frenchat 15:45, and the UK Halifax House Price Index at 16:30; remarks by BOE Deputy Governor Broadbent at 20:15; Canadian and U.S. employment reports at 21:30; the Canadian Ivey PMI at 23:00; and U.S. wholesale inventories (final reading) and consumer credit balances at 23:00.We will be closely monitoring today’s U.S. employment report to see how it affects the strength of the U.S. dollar.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran