Loonie Rides Greenback’s Coattails Against European Currencies

Canadian dollar is higher against its European counterparts, riding the coattails of the greenback. Positive news out of the United States is helping the North American currencies, sending them higher against the euro and the pound.

The nonfarm payrolls report is out for April in the United States, and the news is helping matters in North America. The United States added 288,000 jobs in April, and the unemployment rate fell to 6.3 per cent. This is boosting the greenback, and the loonie is getting a little help against European currencies as well. Without major news releases for Canada, the loonie is just following the greenback.
Slightly higher oil prices are also helping the Canadian dollar, which often responds to oil performance. Even though the loonie has missed out on some of the recent commodity gains, it is still tied to oil prices, and gets a little help from that direction. However, the Bank of Canada still remains largely neutral about interest rates, so there is little to expect in terms of big moves for the loonie.
At 12:56 GMT USD/CAD is up to 1.0985 from the open at 1.0956. EUR/USD is down to 1.3824 from the open at 1.3870. EUR/CAD is down to 1.5190 from the open at 1.5195. GBP/USD is down to 1.6848 from the open at 1.6893. GBP/CAD is down to 1.8505 from the open at 1.5808.

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