The Canadian dollar rose against its US counterpart today even though forecasts for Canadian employment are not particularly good. The currency also surged versus the Japanese yen, reaching the highest level since October 2008, but retreated against the euro.
Tomorrow’s report is forecast to show that Canadian employment rose by just 6,800 jobs in March, compared to the February growth of 50,700. What is more, it is expected that the unemployment rate will grow by 0.1 percentage point to 7.1 percent. It is somewhat surprising that CAD managed to gain even amid pessimistic expectations.
The rally against JPY can be explained much easier by quantitative easing from the Bank of Japan. As for EUR, the currency was strong after today’s policy meeting of the European Central Bank and CAD was not able to compete with the European currency’s rally.
USD/CAD fell from 1.0143 to 1.0125 as of 22:39 GMT today, while its daily low of 1.0103 was lowest since February 19. EUR/CAD went up from 1.3032 to 1.3093 after falling to 1.2951. CAD/JPY soared from 91.67 to 95.08.
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