The Canadian Dollar has weakened for the first time in four days against it US relation due to concerns that last week’s strong jobs data may not indicate that the country will be able to sustain economic growth.
The ‘Loonie’ had been bolstered by data released last week that showed that Canada had created an extra 50,700 jobs in February, a figure that was more than double economist expectations.
“Many people that had bought a little bit of Canadian dollars on Friday are maybe just taking a little bit of profit, they’re probably seeing the same stories I’ve seen about being bearish on the Canadian dollar,” said Jane Foley, senior currency strategist at Rabobank International in London. “Perhaps they don’t want to sit on it too long, fearing the bearish factors will rise to the fore again.”
With traders choosing to offload their Dollars the currency has weakened by 0.3% against the US Dollar and is trading three cents below parity. Overall the currency has depreciatedA for five weeks in a row, after the Bank of Canada maintained interest rates at its current low level.
The only data out this week for the Canadian Dollar is Thursday’s House price index and Friday’s existing home sales data. Neither sets of data are expected to have much of an impact on the currency, instead the ‘loonie’s’ movements will be determined by outside influences such as the USA’s advanced retail sales data on Wednesday, Thursday’s US producer price index and Friday’s Eurozone consumer price index. If the USA shows strong signs of sustained economic recovery then we can expect to see the CAD strengthen.
Current Canadian Dollar Exchange Rates
The Canadian Dollar to Euro (CAD/EUR) exchange rate is trading at 0.74783
The Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate is trading at 0.65248
The Canadian Dollar to US Dollar (CAD/USD) exchange rate is trading at 0.97293
The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trading at 0.94511
The Canadian Dollar to New Zealand Dollar (CAD/NZD) exchange rate is trading at 1.18053
The Canadian Dollar to Japanese Yen (CAD/JPY) exchange rate is trading at 93.26209
These exchange rates were correct as of 12:35 pm GMT
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