Canadian Dollar Surge on Positive Employment Data

The Canadian dollar jumped on the positive report about the employment in the US and on the optimistic outlook for other employment reports from the US and Canada.

The positive report from Automatic Data Processing Inc. about the US employment improved mood on market. Market sentiment was already positive as the increase of interest rates by the European Central Bank and prospect for future increases made investors willing to buy riskier assets.

Today, the reports are expected to be moderately positive. Analysts estimated that the Canadian employers added 13,800 jobs in June, following the increase by 22,300 jobs in May. The US non-farm payrolls are expected to rise by 97,000 after they grew by 54,000 in May. The unemployment rate is expected to remain unchanged both in Canada and the US, at 7.4 percent and 9.1 percent respectively.

USD/CAD fell from 0.9651 to 0.9587 on the yesterday’s trading session and traded at about 0.9592 as of 4:05 GMT today. EUR/CAD traded at 1.3764 after falling from 1.3818 to 1.3763. CAD/JPY traded near 84.66 after it climbed from 83.77 to 84.67 yesterday.

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