After a long road of rather downbeat domestic data, the Canadian economy finally took a positive turn as employment data significantly beat expectations. The ‘Loonie’ was consequently boosted against its peers during the North American session.
The Canadian Dollar Exchange Rate was in the region of 0.6142 against the British Pound as of 14:20 GMT
While economists had forecast that the Canadian economy would add 20,000 jobs in August, it actually added 59,200 positions.
The nation’s unemployment rate also declined from 7.2 per cent to 7.1 per cent.
The better-than-expected result has boosted speculation surrounding the likelihood of the Bank of Canada increasing interest rates.
Although the BOC opted to hold rates at record lows at this week’s policy meeting, if this employment improvement heralds a pick-up in the nation’s economic recovery the central bank could reassess the situation in the months ahead.
The CAD/GBP exchange rate hit a high of 0.6188
Before the data was released strategist David Doyle commented: ‘Good job numbers would likely bring forward at the margin expectations for when short rates may rise.’
The Canadian Dollar strengthened by 1.1 per cent in the aftermath of the employment report, hitting a high of 0.9630 against the US Dollar.
The commodity-driven asset also rallied against the Pound, aided by the British currency’s earlier decline as a result of the UK goods trade deficit widening unexpectedly.
Meanwhile, a disappointing US non-farm payrolls report lowered the odds of the Federal Reserve tapering stimulus this month and saw the ‘Greenback’ decline against the majority of its currency counterparts.
Although the US jobless rate dipped to 7.3 per cent last month the participation rate also fell and the world’s largest economy added 11,000 less jobs than forecast.
Next week the Canadian data to watch out for includes building permits figures (due out on Monday) a housing starts report (released on Tuesday) and the nation’s new housing price index (scheduled for publication on Friday).
Current Canadian Dollar (CAD) Exchange Rates:
< Down > Up
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9608 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7315 >
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6142 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0459 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2074 <
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6269 <
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0406 <
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3672 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8304 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9567 <
(Correct as of 14:20 GMT)
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