The Canadian dollar rose against the US dollar and the Japanese yen, but fell versus the euro today. Macroeconomic data from Canada was mixed today, while specialists expect that tomorrow’s employment report should be very good.
Canada’s trade deficit unexpectedly widened from $1.5 billion in November to $1.7 billion in December. The Purchasing Managers’ Index of Richard Ivey School of Business climbed from 46.3 in December to 56.8 in January, while the median forecast promised figure of 51.3. Experts predict that the tomorrow’s data may show an increase of employment by 19,700 and drop of the unemployment rate by 0.1 percentage point to 7.1 percent.
The market sentiment was generally favorable to commodity currencies, allowing the loonie to rise against safer currencies. At the same time, the euro outperformed the Canadian currency with the help of the European Central Bank’s monetary policy announcement.
USD/CAD was down from 1.1083 to 1.1065 as of 19:48 GMT today after reaching the high of 1.1122 earlier. CAD/JPY climbed from 91.51 to 92.22 following the drop to 91.10. Meanwhile, EUR/CAD went up from 1.4996 to 1.5039.
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