Although Canada’s outlook brightened as employment data exceeded forecasts, the nation’s currency slipped against peers like the Pound and US Dollar as an impressive US non-farm payrolls report upped the odds of the Federal Reserve tapering stimulus in December.
The Canadian Dollar Exchange Rate was in the region of 0.5750 against the British Pound as of 14:30 GMT
The Canadian economy added 21,600 positions in November rather than the 12,000 estimated. The nation’s unemployment rate held at 6.9 per cent.
In the US the unemployment rate dropped from 7.3 per cent to 7.0 per cent as the participation rate edged higher and the economy added 203,000 jobs. The result was significantly better than the 185,000 increase expected – although November’s gain was negatively revised to 200,000.
The employment data also showed that personal spending increased by 0.3 per cent versus a 0.2 per cent forecast.
The CAD/GBP exchange rate hit a low of 0.5705
The US unemployment rate is now at a five-year low, a circumstance which might make the Federal Reserve reconsider tapering quantitative easing before the close of the year.
As the US is Canada’s largest trading partner the prospect of a reduction in stimulus dimmed the commodity-driven country’s outlook, causing Canadian Dollar declines.
When the ‘Loonie’ slumped currency strategist Camilla Sutton stated; ‘The combination of good non-farm payroll numbers in the US and the dovish stance of the Bank of Canada has given the Dollar the upside. The BOC’s focus now is really on inflation and exports. This jobs report is less important.’
In the European session the Canadian Dollar pared an earlier advance against the Pound as the British currency was supported by encouraging UK house price data.
Next week Canadian data to look out for includes housing starts and the new housing price index.
UK growth data could also impact the CAD/GBP pairing while US advance retail sales could drive CAD/USD fluctuations.
Current Canadian Dollar (CAD) Exchange Rates:
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The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9376 >
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.6874 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5750 >
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0363 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.1435 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.7449 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0678 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4548 <
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8730 <
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9663 >
(Correct as of 14:30 GMT)
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