Canada’s Dollar Jumps on Good Employment Reports

The Canadian dollar extended its gains today, reaching parity with the US dollar, after the reports showed that employment improved in Canada and the US last month, improving the outlook for the economic growth.
The unemployment rate in Canada went down from 8.0 percent to 7.9 percent in October, while the employment remained almost unchanged. The US nonfarm payrolls increased by 151,000, compared to the median forecast of the 63,000 increase and the 41,000 decline in the previous month. The unemployment rate in the US remained unchanged.
The loonie showed the strong rally against the greenback in the past two weeks. The analysts say that it may have hard time to rise further, though, as parity provides the strong psychological resistance level.
USD/CAD dropped from the opening level of 1.0020 to 1.0003 as of 19:53 GMT today after it jumped to the intraday high of 1.0078 and fell as low as 0.9991. EUR/CAD went down from 1.4244 to 1.4035.

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