The Canadian dollar ended Friday with losses against its US peer due to overwhelmingly positive employment report from the United States. At the same time, the poor trade balance data from Canada itself did not prevent the currency from rallying against the euro and the Japanese yen.
Statistics Canada reported that Canada’s trade balance went from the surplus of C$2.2 billion in July to the deficit of C$610 million in August. Analysts have expected the balance to stay in the positive territory. The data suggested that it is too early for the Bank of Canada to consider tightening its monetary positive.
While the report did little to help the loonie, the Canadian currency was mostly influenced by overseas news, not domestic ones. Very positive US non-farm payrolls made the greenback to gain on the loonie, but the Canadian dollar get an edge over other currencies with the help of this report as signs of economic growth in the USA, Canada’s major trading partner, make prospects for Canadian exports brighter.
USD/CAD rose from 1.1157 to close at 1.1257, near the highest level since March. At the same time, EUR/CAD dropped from 1.4135 to 1.4085, and CAD/JPY advanced from 97.16 to 97.55.
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