Canadian Dollar Gets Help from Positive Employment Report

The Canadian dollar rose against most of its major peers (with the exception of the Japanese yen) with the help of rather positive employment data released from Canada over the trading session.

Unlike the US employment report, Canadian data did not have negative components. While the increase by 11,000 in November was nowhere as big as October’s 43,900, it was a far better reading than the predicted drop by 16,500. What is more, the unemployment rate fell from 7.0% to 6.8% unexpectedly.

The Canadian currency got additional support from rising oil prices. The optimism caused by the OPEC oil production cut deal still persists, providing support for crude oil and oil-related commodities, even though analysts think that euphoria caused by the agreement should evaporate rather soon.

USD/CAD edged down from 1.3318 to 1.3289 as of 18:59 GMT today, and its daily low of 1.3258 was the lowest since October 21. EUR/CAD declined from 1.4197 to 1.4179, reaching the weakest level (1.4131) in a year. CAD/JPY traded at 85.49 after opening at 85.62.

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