Good News Make CAD Stronger, Even More Good News Expected Tomorrow
The Canadian dollar jumped today on the favorable fundamental reports from the United States. The US data added to the positive mood of Forex traders that was caused by the announcement of debt purchases by the European Central Bank.
US employment grew by 201,000 jobs in August from July, according to the report of Automatic Data Processing. The unemployment claims fell from 377,000 to 365,000 last week. The positive US data added to the optimism caused by the ECB. Europe’s central bank explained the measures it is going to implement for supporting the failing European economy, giving hope that not everything is lost for the eurozone and boosting risk appetite on the FX market.
Tomorrow, there will be more employment reports and they expected also to be good. Analysts predict that Canadian employment will rise by 9,900 and US non-farm payrolls will increase by 123,000. All in all, traders liked what they heard and that allowed the Canadian currency to surge.
USD/CAD dropped from 0.9906 to 0.9825 as of 22:31 GMT today and its daily low of 0.9807 was the lowest since April 30. EUR/CAD slumped from 1.2483 to 1.2411. CAD/JPY soared at 80.27, jumping from 79.13.
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Earlier News About the Canadian Dollar:
- Bank of Canada Holds Rates, Loonie Slumps (2012-09-05)
- Canadian Dollar Stands Still Ahead of BoC Rate Decision (2012-09-05)
- Canadian Dollar Consolidates Last Week's Gains (2012-09-03)
- Canadian Dollar Falls Back on Economic Uncertainty (2012-08-30)
- Prices for Oil Rise, Canadian Dollar Follows (2012-08-29)