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Employment Report Ahead

CANADA
  • Data: The employment report for Feb (0830ET) is an important one to see how the economy bounced back from tougher Omicron restrictions than those in the US.
  • The u/e rate is seen partially recovering to 6.2% after +0.5pps to 6.5% in Jan) as participation also recovers, with added attention on wage components after a surprisingly soft US print last week.
  • News: Canada has sanctioned Abramovich, the largest shareholder in Evraz, which has metal facilities in Regina, Calgary and Edmonton. They are designed to not adversely affect other employees and investors but will be monitored closely.
  • FX: USDCAD is largely unchanged on the day at 1.2768. Initial support is seen at the 20-day EMA of 1.2745 and 50-day EMA of 1.2713 after which it would open the bottom of the recent geopolitics-driven range.

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