CAD Fluctuates amid Uncertainty About Canada’s Economic Growth

The Canadian dollar fluctuated against its US peer as investors were unsure about prospects for the Canadian economy. The currency fell against the euro and rallied versus the Japanese yen.

The last week’s terrible employment data shocked the Forex market, being worse than even most pessimistic forecasts. Market participants remained shaken by the bad report and this translated into weakness of the Canadian currency. Yet some confidence returned, partly helped by crude oil that rallied 0.9 percent to $93.55 per barrel in New York.

The loonie was falling against the greenback, but erased its losses. The Canadian dollar trimmed yesterday’s decline versus the euro, but resumed its drop today as the shared European currency was surprisingly strong even amid concerns about Portugal. The Japanese yen remained the biggest loser among major currencies, resulting in its drop to the lowest since 2008 against the loonie.

USD/CAD rallied from 1.0179 to 1.0213 yesterday, but retreated to close at 1.0163 and traded near this level as of 00:22 GMT today. EUR/CAD rallied from 1.3222 to 1.3277 at today’s trading session. CAD/JPY jumped from 96.38 to 97.70 and remained at about this rate today, while the intraday high of 97.98 was highest since October 2008.

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