Canadian Dollar Gets Support from Economic Data & Crude Oil

The Canadian dollar rallied against its most-traded peers today (with the exception of the rather strong euro) as Statistics Canada released a very positive macroeconomic report. The rally of crude oil also contributed the currency’s gains.

According to the report from Statistics Canada, the Industrial Product Price Index increased 1.4% in November and the Raw Materials Price Index rose 5.5%. Both indices beat expectations, and both benefited from higher prices from crude oil.

Talking about oil prices, crude logged gains today. One of the reasons for the rally were the big slump of US crude oil inventories — by 7.4 million barrels versus a 5.2 million drop predicted by experts.

Now, traders wait for tomorrow’s employment report from Canada. US nonfarm payrolls released at the same time are also likely to affect the loonie as well as other currencies.

USD/CAD was down from 1.2534 to 1.2496 as of 21:17 GMT today, trading near the lowest level since October 20. CAD/JPY rose from 89.73 to 90.18, hanging near the level not seen since October 23. EUR/CAD was up from 1.5059 to 1.5137 intraday, though by now it has pulled back to 1.5080.

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