The Canadian dollar reached the highest level against its US counterpart since May 2008 as the employment change in Canada was more than three times higher than the predicted value.
Canadian employment rose for the second consecutive month in January, advancing by 69,000. The economists predicted that Canadian employers would add just 18,000 jobs. At the same time, the unemployment rate increased from 7.6 percent to 7.8 percent as more people searched for work. The Canadian currency was also boosted by the decreasing unemployment in the US, the biggest trading partner of Canada.
The loonie weakened earlier as the crude oil, the main export of Canada, fell. Contract for delivery of crude oil in March dropped as much as 1.6 percent to $89.12 per barrel. The decline is most likely temporary as the unrest in Egypt threatens supplies, while the global economic recovery will cause demand to increase.
USD/CAD close today at 0.9882 after opening at 0.9909 and falling to 0.9830, the lowest level in almost three years. EUR/CAD closed at 1.3425, after it reached the intraday low of 1.3350, falling from the opening rate of 1.3510.
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