The Canadian dollar ended the past week as the strongest currency on the Forex market thanks to economic data and optimism about NAFTA talks.
The loonie was lifted on Tuesday by the gross domestic product report that showed faster growth of Canada’s economy than was expected. On Friday, another positive report was released, showing that Canada’s trade deficit shrank much more than was expected. Additionally, signs that progress has been made in the talks to preserve the North American Trade Agreement provided further boost to the currency.
The US dollar seemed to be strong during the week, but softened a bit by the weekend due to mixed nonfarm payrolls. The Great Britain pound got a blow from the dovish hike by the Bank of England. The Japanese yen was weak too after the Bank of Japan widened the target range for 10-year government bond yield and introduced forward guidance on interest rates, which was considered by markets a strong dovish message.
USD/CAD dropped from 1.3050 to 1.2987 as of 16:19 GMT today. EUR/CAD slumped from 1.5211 to 1.5020, retreating from the weekly high of 1.5325. CAD/JPY advanced from 84.96 to 85.58, touching the high of 86.29 during the week.
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