Canadian Dollar Rises Sharply on Booming Employment, Rising GDP

The Canadian dollar jumped sharply today following the release of the stellar employment data in Canada. The better-than-expected GDP print did not hurt the currency either.

Employment in Canada rose by a whopping 79,500 in November from October — a far bigger increase than 10,200 promised by analysts and 35,300 registered in October. Moreover, the unemployment rate unexpectedly dropped from 6.3% to 5.9% — the lowest level since February 2008.

Meanwhile, gross domestic product showed growth by 0.2% in September after falling by 0.1% in August. That is compared to the predicted increase by 0.1%.

The Canadian currency rose not only because of the amazing economic reports but also thanks to the strong rally of crude oil.

USD/CAD slumped as much as 1.6% from the opening of 1.2895 to settle at 1.2683. EUR/CAD tumbled 1.7% from 1.5347 to 1.5080. CAD/JPY jumped from 1.4% to 87.25 to 88.47.

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