The Canadian dollar has been struggling this past week, experiencing difficulties as economic data has been in doubt. Additionally, the loonie was briefly used as a funding currency for carry trades with the Aussie and the kiwi. Now, though, things are changing a bit.
The latest Canadian employment numbers have been released, and it appears that more jobs were added to the payrolls. Indeed, both the US and Canada saw a better than expected employment report for September, and that is spurring risk appetite right now. So, loonie is at its highest level against the US dollar in a week.
The Canadian dollar is also getting some help from oil prices. Risk appetite and optimism are helping oil prices, as there is an expectation for improved demand. Because Canada relies heavily on oil exports, this is a support for the loonie in Forex trading.
However well the Canadian dollar is doing against the US dollar, though, loonie is still down against European currencies. Loonie is down against the UK pound and the euro. A rush of optimism, thanks to hopes that a solution to the sovereign debt crisis will be seen, on the other side of the Atlantic is sending the euro and sterling higher.
At 16:15 GMT, USD/CAD is lower, at 1.0344, down from the open at 1.0371. GBP/CAD is gaining, up to 1.6141 from the open at 1.6019. Sterling has been surging today, finding all sorts of support. EUR/CAD is at 1.3908.
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