Canadian Dollar Rallies Against US Peer on Upbeat Jobs Report, Crude Prices

The Canadian dollar today rallied against its US peer after the release of employment reports from both countries with Canada’s beating analysts expectations. The USD/CAD currency pair fell to multi-year lows last seen in October 2018 as the loonie rallied against the weak greenback during the American session.
The USD/CAD currency pair today fell from a high of 1.2873 in the Asian session to a low of 1.2804 during the American market and was trading near these lows at the time of writing.
The currency pair initially traded sideways having fallen for the past three consecutive days boosted by the rally in global crude oil prices as tracked by the West Texas Intermediate, which hit a high of 46.66 today. The release of the Canadian labour force survey report for October in the American session drove the pair to its daily lows. According to Statistics Canada, the country added 62,000 new jobs and its unemployment rate ticked lower to 8.5% as compared to the previous reading of 8.9%. Canada’s international merchandise trade balance missed analysts expectations by coming in at -$3.76 billion versus the expected -$3 billion print as imports rose more than exports.
The release of the disappointing US non-farm payrolls report also fueled the pair’s decline. According to the Bureau of Labor Statistics, the US added 245,000 jobs in November versus the expected 469,000 jobs. The greenback fell to new lows as tracked by the US Dollar Index following the release.
The currency pair’s future performance is likely to be affected by crude oil prices and US dollar dynamics.
The USD/CAD currency pair was trading at 1.2797 as at 16:12 GMT having fallen from a high of 1.2873. The CAD/JPY currency pair was trading at 81.42 having rallied from a low of 80.63.
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