The Canadian dollar climbed against the euro today as the favorable macroeconomic data made the Canadian currency more attractive to investors than the European one. On the other hand, the loonie fell against the US dollar and the yen.
The ISM manufacturing PMI rose from 50.6 in August to 51.6 in September. The construction spending in the United States expanded 1.4 percent in August, following the decline with the same 1.4 percent rate in July. Most of Canada’s exports go to the US, therefore the Canadian economy and currency are strongly linked to the economy of its neighbor.
The performance of the loonie versus safer currencies wasn’t very impressive even with the support of the positive fundamentals. It looks like the negative sentiment on Forex market is too strong to allow good news support the currency. The reports about the employment in the US and Canada will be released this week and they can boost the Canadian dollar as economists predict an improvement of the labor market in both countries. Yet the situation in Europe is still a major threat to the global economic growth and
EUR/CAD was at 1.3894 today as of 21:59 GMT after it opened at 1.3993 and dropped as low as 1.3851. USD/CAD jumped from 1.0489 to 1.0535, following the decline to 1.0431. The currency pair reached the price last seen more than a year ago. CAD/JPY dropped from 73.42 to 72.66 and reached 72.52 earlier, the lowest price since February 2009.
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