Statistics Canada is set to release its Labour Force Survey on Friday, with expectations of a rise in the Unemployment Rate to 7% in November. The Employment Change is predicted to remain unchanged after a previous increase in October.
Pi Network has been declining for three straight days, nearing a local support trendline. On-chain data suggests a rise in supply pressure, as Centralized Exchanges see increased inflows. Economically, there’s a risk of further PI losses, with the Moving Average Convergence Divergence showing a sell signal.
Currency Movements
The USD is showing weakness, causing movements in currency pairs. The EUR/USD is testing 1.1650 in European trading, facing rejection from seven-week highs, yet supported by continuous US Dollar selling. Meanwhile, GBP/USD maintains a positive bias near 1.3350, benefiting from the widespread US Dollar weakness. Gold gains some traction but stays within its recent weekly range as traders await more data.
Market participants are adopting a cautious stance with the incoming key economic data. This data could influence central bank decisions and affect the overall market sentiment.
We are bracing for the Canadian jobs report, as the expected rise in unemployment to 7% could pressure the Bank of Canada. The central bank has been on hold for the last six months of 2025 with its policy rate at 4.5%, so a weak report may signal future rate cuts. This suggests traders could consider buying put options on the Canadian dollar, anticipating a decline if the data confirms a slowing economy.
Impact of US Dollar Weakness
The broader weakness in the US dollar continues to influence currency markets, particularly after October 2025’s US inflation report showed a cooling to 3.1%. Looking back at the Federal Reserve’s pivot in late 2023, we saw how a shift in rate expectations can sustain dollar weakness for months. This environment makes buying call options on EUR/USD and GBP/USD an attractive strategy to capitalize on further upside.
Gold remains quiet and traders are hesitant to commit to a direction ahead of the incoming data. This indecision, despite a weaker dollar, creates an opportunity to trade volatility rather than direction. Traders could use an options strangle, which involves buying both a call and a put, to profit from a significant price breakout regardless of whether it moves up or down.
On the crypto front, the technical signals for Pi Network are negative, with increasing supply on exchanges pointing to selling pressure. The broader altcoin market has seen a similar cooling, with total market dominance for altcoins falling by nearly 3% over the last month. For traders, this could be an opportunity to short PI perpetual futures, betting on a price drop if it breaks its current support.
