The Pound Sterling to advanced against the Canadian Dollar on Friday following the release of stronger than expected nonfarm payrolls data out of the United States.
Earlier in the session the Pound softened slightly against the ‘Loonie’ and other major peers as a softer than forecast construction PMI report weighed upon the currency. The losses were short-lived however as economists saw the data as just another sign that the UK economy is maintaining its strong run.
The major event of the day was the afternoons US jobs data. Due to a lack of domestic Canadian data the report was the major guiding factor for the ‘Loonie’s movements on Friday.
The ‘Loonie’ fell against Sterling and the rest of its major peers as the US Dollar appreciated on the back of the better-than-expected jobs data. According to the US Commerce Department the US economy created 288,000 jobs in April, smashing forecasts for a rise of 200,000.
Adding further support to the ‘Greenback’ was the news that the USA’s overall jobless rate tumbled to 6.3%, the lowest level seen since September 2008.
The Canadian Dollar to Pound (CAD/GBP) exchange rate is currently around 0.5410 while the Canadian Dollar to US Dollar (CAD/USD) is trading at 0.9104. 02/05/14 – 15.15 GMT
“The numbers look genuinely solid in every respect, so the US Dollar higher across the board seems like a perfectly reasonable reaction. The market is bringing forward its expectations for Federal Reserve tightening, or at least has more confidence rates will rise in the US, so the US Dollar is rising as a result,” said Adam Cole from Royal Bank of Canada in a phone interview with Bloomberg.
Canadian jobs data is due for release next Friday.
The UK market is closed next Monday for the May Bank holiday weekend.
Canadian Dollar (CAD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Canadian Dollar,
,Pound Sterling,0.5410 ,
Canadian Dollar,,US Dollar,0.9104 ,
Canadian Dollar,,Euro,0.6591 ,
Canadian Dollar,,Australian Dollar,0.9875,
Canadian Dollar,,New Zealand Dollar,1.0590 ,
US Dollar,,Canadian Dollar,1.0985 ,
Pound Sterling,,Canadian Dollar,1.8489 ,
Euro,,Canadian Dollar,1.5172 ,
Australian Dollar,,Canadian Dollar,1.0126 ,
New Zealand Dollar,,Canadian Dollar,0.9475 ,
[/table]
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