CAD Falls as Positive Fundamentals Muted by Drop of Crude

The Canadian dollar fell today against the US dollar and the Japanese yen as stocks and crude oil declined. The currency gained versus the euro as the macroeconomic reports showed positive tendencies in Canadian employment.

Employment in Canada rose by 22,000 in May, following the 58,300 changed in April. The unemployment rate unexpectedly edged down 20 basis points to 7.4 percent. The labour productivity of Canadian businesses increased 0.4 percent in the first quarter of 2011, rising for the third consecutive quarter, after it advanced 0.3 percent in the previous quarter.

The domestic fundamentals were positive for the Canadian currency, but that can’t be said about the outside influence. July futures for delivery of crude oil went down 3 percent to $98.85 per barrel in New York. The Standard & Poor’s 500 Index fell as much as 1.4 percent.

USD/CAD rose to the closing price of 0.9796 from 0.9726 after falling to 0.9711. CAD/JPY dropped to 81.92 from 82.53. Meanwhile, EUR/CAD slipped to 1.4053 from 1.4114.

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