Trading Based on Economic Calendar Events: Understanding the US and Canada Employment Data

Experienced traders making key trading decisions often rely on the economic calendar—a powerful tool that outlines scheduled economic events within a specific timeframe. Staying informed about upcoming developments that could impact the financial markets helps traders reduce potential losses and capitalize on market movements.

However, to trade successfully, it’s important to understand economic calendar events (e.g. US and Canada employment). This article will help you gain insight into U.S. and Canadian employment data and how to trade accordingly.

What Is the Economic Calendar?

The economic calendar displays upcoming economic events, both domestic and international, that are expected to influence the markets within a certain period. These can include central bank meetings, inflation reports, and key economic indicators.

For traders, the calendar is a valuable decision-making aid, as many of these events can significantly affect market volatility. U.S. and Canadian employment reports are particularly influential when trading currency pairs like USD/CAD.

Why Does Employment Data Matter for Traders?

Employment data can help traders anticipate market reactions and adjust their positions accordingly. Most countries release two key figures: the employment change and the unemployment rate.

The employment change shows how many jobs were added or lost in a given period. A higher employment change generally boosts confidence in a country’s economy and currency. On the other hand, the unemployment rate reflects the percentage of the labor force that doesn’t have a job. A lower unemployment rate is positive, while a rising rate can weaken economic sentiment and the national currency.

These two indicators need to work in opposite directions to trigger a clear market response. For example:

• If unemployment is high or unchanged and employment increases, it may trigger sell-offs.
• If employment is rising and unemployment is stable or decreasing, traders may adopt a bullish outlook on the currency, leading to more buy orders.

Understanding the U.S. and Canada Employment Data

Employment data from the U.S. and Canada is crucial for traders focusing on the USD/CAD currency pair. When both countries release their employment statistics, traders compare the two to determine which currency is likely to strengthen.

For instance, in April 2025, Canada reported a 61.5% adjusted employment rate, higher than the U.S. rate of 60.0%. This type of comparison helps traders decide which currency to buy and which to sell.

To analyze trends effectively, it’s essential to compare current data with figures from the previous two to three months. This will reveal whether employment conditions are improving or deteriorating. Based on this, traders can choose to buy the currency with better employment data and sell the weaker one.

Final Thoughts

Understanding and analyzing employment data from the U.S. and Canada gives traders a competitive edge. By tracking these reports and comparing them with past performance, you can make more informed trading decisions. Ultimately, buying the currency with stronger employment indicators while selling the weaker one can lead to more favorable trading outcomes.