The Canadian dollar slipped today on the concern that yesterday’s rally was overdone in the light of the expected nonfarm payroll’s decline and as the fundamentals in Canada signal about the slower economic growth.
The tomorrow’s report on the US nonfarm employment change expected to show the decline by 101,000. In Canada itself the employment change posted the decline by 9,300 in July. Crude oil, the main Canada’s export, dropped 0.7 percent today to $73.42 per barrel on NYMEX.
The probability of the rates hike by the Bank of Canada is uncertain. The policy rate was already raised in June and July, now it stands at 0.75. The analysts predict that the policy rate would be raised to 1.0 percent by the end of the year, while the Canadian currency may rise to C$1.03 per the US dollar by the middle of the next year.
USD/CAD jumped from 1.0494 to 1.0544 today as of 18:22 GMT. EUR/CAD advanced from 1.3440 to 1.3504.
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