Canadian Dollar Strengthened by Good Employment Data

The Canadian dollar strengthened today on the speculation that the borrowing costs may be increased by the central bank after the employment significantly increased the last month, though the renewed hopes about the favorable outcome of the European debt troubles helped the euro to outperform the Canadian currency.
The number of jobs in Canada rose by 108,700 in April after the increase of 17,900 in the month earlier. The surge of the employment in the U.S., the largest trading partner of Canada, also added to loonie’s strength. The Bank of Canada expected to increase the interest rates next month.
The economists are worried that the positive data may be overshadowed by the concern about the wellbeing of the European, as well as global, economy. The currency would remain subject to volatility until the European debt crisis will be resolved.
USD/CAD closed today at 1.0437 after it opened at 1.0512. CAD/JPY closed at 87.54 up from its opening level of 86.09. EUR/CAD closed 1.3286 rising from the opening rate of 1.3266.

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