Canada October employment report in focus

The unemployment rate is expected to remain at 6.5%, matching September's reading. Employment growth, full-time versus part-time hiring, wage trends and labor-force participation will provide important signals about the economy and the Bank of Canada's monetary-policy outlook.

Stronger employment and lower unemployment could support the Canadian dollar and government bond yields by reinforcing expectations of tighter monetary policy. Weaker labor conditions could have the opposite effect. Because the US employment report is due at the same time, the direction of USD/CAD will depend on the relative surprises in both economies. Spillovers to Nasdaq and the S&P 500 are likely to be more indirect.