The Canadian dollar jumped against its counterparts during Friday’s trading, supported by the rally of crude oil prices and Canada’s positive macroeconomic data.
Disappointing US employment data had a big impact on the market. It not only helped the Canadian currency directly, allowing the loonie to outperform the greenback, but also provided indirect support by boosting prices for crude oil.
The Canadian dollar also get support from Canada’s economic indicators. Canada’s trade deficit shrank to $2.5 billion in July from the record $4.0 billion in June, more than analysts had predicted. Labor productivity decreased 0.3% in the second quarter of 2016 (a decrease of productivity is considered to be a positive thing as it usually leads to higher inflation).
USD/CAD slid from 1.3101 to 1.2998 as of 18:10 GMT today. EUR/CAD sank 1.1% from 1.4667 to 1.4500 — the lowest rate since August 19. CAD/JPY climbed 1.6% from 78.76 to 80.03, trading near the highest level since July 29.
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