After being traded in the lowest rate in almost two months, the Canadian dollar rallied sharply today on a report that indicated an increase in job numbers in the country, surprising analysts and traders positively.
A very positive day in the end of this week was witnessed in Canada as employers added more jobs than expectations for the month of August, an important sign of economic improvement for the North American nation since even economic regions that are recovering from the global slump still are facing its worse complications in the employment sector. After last week, when Bank of Canada informed that it does not rule out measures to stop the loonie to grow stronger and that the current levels may affect negatively the Canadian economic revocery, the loonie entered a severe downtrend losing more than 3 percent in one week.
Today’s data coincided with a rather good opportunity for traders to purchase the loonie, since the losing streak was intense and long, leaving the employment report to provide support for a corrective movement, as traders may consider the rates before the report as too low. The Canadian dollar may grow further in the short term if more favorable reports start to appear, but if the rates appreciate strongly, the national central bank is likely to take measures to stop it.
USD/CAD traded at 1.0932 as of 11:51 GMT from a previous rate of 1.0998 in the intraday comparison.
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