The Canadian dollar jumped today as positive macroeconomic reports from Canada’s neighbor, the United States of America, strengthened risk appetite on the Forex market, benefiting currencies related to commodities and economic growth.
US employers added as much as 158,000 in October, according to the report of Automatic Data Processing, beating analysts’ forecasts. Unemployment claims fell from 372,000 to 363,000 last week, while market participants have expected them to stay little changed. The manufacturing Purchasing Managers’ Index of Institute for Supply Management unexpectedly rose from 51.5 to 51.7 last month instead of falling as was predicted by forecasters.
The favorable data set positive mood to markets. The Standard & Poorâs 500 Index of stocks rose as much as 1 percent and the S&P GSCI Index of commodities advanced 0.6 percent. The good news from the USA was especially benefiting to the loonie (as the Canadian currency is often called because of the image of the aquatic bird on the C$1 coin) as the United States is the biggest trading partner of Canada.
USD/CAD fell from 0.9991 to 0.9967, following the advance to 1.0012, and EUR/CAD declined from 1.2948 to 1.2897 as of 20:17 GMT today. CAD/JPY advanced from 79.78 to 80.37.
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