Canadian Dollar Rises on Crude Oil & Employment Outlook

The Canadian dollar gained today as crude oil traded near its record levels and the Canadian employers added jobs for the seventh consecutive month according to the analysts’ estimates.

Crude oil traded near $82.46 per barrel on NYMEX after it jumped to $82.97 per barrel, the highest level in almost three months. Crude oil is the main export for Canada. The analysts estimated that 12,500 jobs were added to the payrolls in the previous month, following the 93,200 increase in June. The Standard & Poor’s 500 index rose 0.3 percent.

The Canadian dollar is the best-performing currency today, a very good result considering how underperformed it was the last month. The main reason for the slack performance was the slower economic growth in the US, to which Canada ships near three quarters of its exports. Considering today’s good economic data from the US, the future looks bright for the loonie, but some economist recommend to be cautious about the loonie’s rally, as previous month gave too much reasons for the concerns to easily believe that the economy suddenly became much more stable.

USD/CAD fell to 1.0181 from 1.0231 as of 21:33 GMT, following its jump to 1.0270. EUR/CAD dropped from 1.3537 to 1.3398.

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