The Canadian dollar rallied versus its US counterpart thanks to the broad-based weakness of the US currency. The loonie fell versus its other most-traded rivals, but has trimmed losses by the end of the Tuesday’s trading session.
One of the reasons for the currency’s rally was the strong performance of crude oil, Canada’s most important export commodity. Although prices for crude have retreated from the day’s highs by Tuesday’s close, intraday they reached the highest level since mid-2015 and remained at elevated levels.
Another positive factor for the Canadian currency was the decent reading of the IHS Markit Canada Manufacturing Purchasing Managers’ Index. The seasonally adjusted figure for December was at 54.7, up from 54.4 in November. That was the highest value since September.
Several more macroeconomic reports from Canada are scheduled for this week, but the most important of them will be employment data. It will be released on Friday, and economists expect the report to show a small drop of employment and a mild increase of the unemployment rate.
USD/CAD slid from 1.2539 to 1.2514 as of 22:09 GMT today. EUR/CAD was up from 1.5062 to 1.5140 intraday but backed off to 1.5087 later. CAD/JPY was at about 89.72, down from the opening of 89.82 but up from the session minimum of 89.36.
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