TheÂ Canadian dollar today registered aÂ significant loss against its American counterpart following theÂ release ofÂ Canada’s April employment report inÂ theÂ early North American session. TheÂ loonie was stronger against theÂ greenback inÂ theÂ Asian toÂ mid-European sessions backed byÂ theÂ weakening US dollar following yesterday’s mixed US CPI report.
TheÂ USD/CAD currency pair today rallied from aÂ low ofÂ 1.2726 toÂ aÂ high ofÂ 1.2795 after theÂ disappointing Canadian jobs report.
TheÂ currency pair was onÂ aÂ downtrend from theÂ Asian session driven by yesterday’s soft US data. TheÂ higher crude oil prices asÂ tracked byÂ theÂ West Texas Intermediate also contributed toÂ commodity-linked Loonie’s initial rally. However, theÂ release ofÂ theÂ Canadian employment report forÂ April byÂ Statistics Canada was theÂ main trigger behind theÂ currency pair’s rally. According toÂ theÂ report, Canada lost aÂ total ofÂ 1,100 jobs inÂ April, which was against anÂ expected gain ofÂ 17,400 jobs. However, theÂ country’s unemployment rate met expectations byÂ coming inÂ atÂ 5.8%. Furthermore, theÂ country added 28,800 full time jobs andÂ hourly earnings increased byÂ 3.3%.
TheÂ weak US import price index released today had aÂ muted impact onÂ theÂ currency pair. However, theÂ positive University ofÂ Michigan consumer sentiment survey, which came inÂ atÂ 98.8 versus theÂ expected 98.3 could have contributed toÂ theÂ currency pair’s rally.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ political events inÂ theÂ US, andÂ global crude oil prices given theÂ upcoming weekend.
TheÂ USD/CAD currency pair was trading atÂ 1.2792 asÂ atÂ 15:29 GMT having rallied from aÂ low ofÂ 1.2726. TheÂ CAD/JPY currency pair was trading atÂ 85.51 having dropped from aÂ high ofÂ 85.86.
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