The Canadian dollar dropped against its US counterpart after the release of non-farm payrolls. The loonie fared better against other currencies, rising against the euro and trading sideways versus the Japanese yen, even though Canada’s economic indicators were not particularly good.
The US dollar rallied against other currencies after the NFP, making it unsurprising that the Canadian dollar fell against it. The rally of the greenback had also less obvious impact on the loonie, hurting prices for crude oil — the major Canada’s export.
Despite all the negative factors, the Canadian currency is attempting to hold ground against the yen and actually managed to gain on the euro, though trimmed its gains by now. Such performance is rather unexpected considering that economic news that came from Canada today were not very favorable. The trade balance deficit widened in January, reaching the highest level since July 2012, while analysts predicted a decrease. The rallied was three times bigger than was predicted.
USD/CAD climbed from 1.2483 to 1.2594 as of 16:04 GMT today. EUR/CAD went down from 1.3760 to 1.3687, reaching the low of 1.3619 intraday — the lowest since August 2013. CAD/JPY traded at 96.08, close to the opening of 96.18.
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