The Canadian dollar got a boost from extremely positive domestic employment report, which was released today. The loonie rose against the majority of its most-trading peers, reaching the highest level since 2008 versus the Japanese yen.
Like non-farm payrolls, Canada’s employment report surprised the Forex market. But unlike the US data, Canada’s employment made a positive surprise. Analysts predicted a drop by 3,900 for October, but in reality employment expanded by an impressive figure of 43,100. Moreover, the unemployment rate provided another surprise, falling unexpectedly to 6.5 percent — the lowest rate since November 2008.
Strength of the Canadian labor market made Forex traders reevaluate their positions for the Canadian currency. Coupled with the not-so-good employment data from the United States, fundamentals looked bright for the loonie, allowing it become a bit firmer.
USD/CAD dropped from 1.1423 to 1.1332. EUR/CAD ticked down from 1.4136 to 1.4112. CAD/JPY jumped from 100.81 to 101.12, reaching the daily high of 101.48 — the highest since September 2008.
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