CAD Erases Losses vs. USD, Rallies for Second Straight Week

The Canadian dollar was falling against its US counterpart on Friday but managed to erase its losses, closing near the opening level. What is more, CAD ended the week with gains versus USD. It was the second consecutive weekly gain and the fifth in six weeks.

The main contributor to the loonie’s bounce was the underwhelming wage inflation data released from the United States as a part of the non-farm payrolls report. The rising crude oil prices also played their part. Economic data released from Canada over the week, including faster-than-expected economic growth and expansion of the manufacturing sector that was fastest in over two years, increased appeal of the Canadian currency as well.

While the Canadian dollar pared losses versus its US peer, it fared worse against other major rivals. It fell against such currencies like the euro, the Japanese yen, and the Swiss franc. In fact, the loonie ended the week lower against the yen.

USD/CAD rallied from 1.3025 to 1.3075 but backed off to settle at 1.3021. EUR/CAD rose from 1.4011 to 1.4041. CAD/JPY fell from 86.57 to 86.19.

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