Canadian Dollar Rallies with Help of Domestic & Global Fundamentals

The Canadian dollar gained today, joining other commodity currencies in a rally. While the positive general sentiment on the Forex market undoubtedly helped the currency, it also had its own reasons to rise.
The biggest positive factor for the loonie of Friday was an extremely positive employment report. Statistic Canada reported that the number of employed Canadians increased by 81,100 in August, though gains were mostly in part-time works. The result was far better than July drop of 24,200 and far above the median forecast of an increase by 18,900. The unemployment rate remained stable at 5.7%.
The Ivey PMI climbed from 54.2 in July to 60.6 in August. Analysts had predicted a much smaller increase to 55.2.
The rally of crude oil helped the Canadian currency as well.
USD/CAD slumped from 1.3229 to 1.3160. EUR/CAD slumped from 1.4594 to 1.4514, settling near the lowest level since September 2017. CAD/JPY edged up from 80.82 to 81.19, rebounding from the daily low of 80.56.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

− one = 2