Canadian Dollar Goes Lower on Mixed US Data
The Canadian dollar fell today as mixed US macroeconomic reports created uncertainty and confusion on the Forex markets, making riskier currencies less appealing to investors.
The employment report of Automatic Data Processing showed an increase of 135,000 last month, noticeably below the forecast of 171,000. At the same time, the services Purchasing Managers’ Index of Institute for Supply Management increased 53.7 percent in May from 53.1 in April, more than was expected. The mixed data left traders unsure if the economy is healthy enough to exist without stimulus and if the Federal Reserve is indeed going to tamper its stimulating measures.
Employment data for Canada is also released this week. Modest growth is expected, while the unemployment rate should stay the same.
USD/CAD was almost flat at 1.0343 as of 19:30 GMT today. EUR/CAD rose from 1.3524 to 1.3542, while its intraday high of 1.3582 was highest since February 25. CAD/JPY slid from 96.67 to 95.89, near the lowest rate since April 19.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Loses Ground on Wider Trade Deficit (2013-06-04)
- Positive Fundamentals Did Not Help CAD This Week (2013-06-01)
- Canadian Dollar Advances as Current-Account Deficit Narrows (2013-05-30)
- Canadian Dollar Stronger After Carney's Last BoC Meeting (2013-05-29)
- Canadian Dollar Mixed Ahead of BoC Meeting (2013-05-28)