The Canadian dollar gained for the fourth straight day against its U.S. counterpart and strengthened versus the euro today after the labor market posted the very positive set of results.
The employers added 93,000 jobs in June, the astonishing number, which is about 5 times higher then the expected increase by just 17,900 jobs. The unemployment rate dropped to 7.9 percent from 8.1 percent in May, falling below 8 percent threshold for the first time since January 2009. According to the International Monetary Fund, the job market was the main contributor to the fast recovery of the Canadian economy, which may lead the advanced economies in 2010.
Some analysts say that there is the 80 percent chance that the good news would encourage the Bank of Canada to increase the interest rates. The central bank raised the target rate from the record low 0.25 to 0.5 last month; next meeting of the bank’s policy makers will occur on July 20th.
USD/CAD traded near 1.0324 as of 16:38 GMT after opening at 1.0421. EUR/CAD traded at about 1.3054 down from the opening price of 1.3230.
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