The Canadian dollar rallied today in spite of rather poor employment data released from Canada. The apparent reason for the currency’s strength was the gains of crude oil.
Canada’s employment dropped by 2,300 in February instead of rising by 10,200 as analysts had predicted. The unemployment rate ticked up from 7.2% to 7.3% unexpectedly.
Yet all the negative data did not prevent the loonie from rising. The currency remains strongly correlated with oil prices, and today crude was moving higher.
Experts point out that the poor data can make the Bank of Canada more cautious in its decision, though bets on an interest rate cut are not particularly high as of now.
USD/CAD dropped 1.1% from 1.3344 to 1.3191 as of 16:44 GMT today. EUR/CAD was down 1% from 1.4911 to 1.4759. CAD/JPY climbed as much as 1.6% from 84.79 to 86.17.
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