Forecast: Canada labor productivity expected to rise

NEW YORK (Forex News Now) – Statistics Canada is due on Tuesday to publish key data on labor productivity, in one of the day’s major realtime forex news events affecting the loonie.

The report is expected to show that labor productivity rose by 0.3% in the third quarter, according to two major online FX trading news outlets, up from the drop of 0.8% recorded in the second quarter.

The office is scheduled to release the report at 1:30 P.M., GMT; as such the data is likely to have an impact on currency market trading today.

However, the release of the report may also be overshadowed by the simultaneous release of the leading index, which shows the change in the level of a composite index based on 10 different economic indicators.

According to USD/CAD analysis, a smaller-than-expected rise in labor productivity, or even a drop, could push the currency pair toward short-term support around the Dec. 3 low of 1.0002.

But should the data show a greater-than-forecast rise, USD/CAD could rise toward short-term resistance around the Dec. 8 high of 1.0140.