The Canadian dollar is on the road to recovery, driven by taking a turn to the upside after a significant decline. Before a major piece of economic news, the CAD/JPY currency pair had improved.
The CAD/JPY is currently sitting at 88.50 at the time of writing this post. There have been some upcoming economic releases that have caused the Canadian dollar (CAD) to strengthen against the Japanese yen (JPY) in terms of international trade and the Canadian unemployment rate.
Statistics Canada will release the figure for Merchandise International Trade on May 04, 2021. According to economists’ predictions, it might remain $0.7 B in March compared to $1.04 B, the month before reading.
The difference in the value (in Canadian dollar terms) of its imports and exports of Canadian products, except intangibles such as services, is known as the international merchandise trade. Since tangible goods such as oil, gold, and manufacturing account for a large portion of Canada’s GDP, export data may provide a significant reflection of the country’s development.
Then, the Canadian unemployment news will release on May 07, 2021. According to FXStreet.com economists, the Canadian unemployment rate might increase with a reading of 7.8% in April, as compared to the 7.5%, in the month before.
Stats for the Canadian unemployment rate reflects the headcount having no job in hand over the given period in Canada. The data is represented in the percentage of the total civilian labor force. The Canadian unemployment rate is a significant indicator for the country’s economy as it indicates an expansion or compression within the Canadian labor market.
Given the pair’s recent price action, buying the pair about 88.06 could be a better short-term choice.