Canadian dollar is advancing on good economic news out of the US. According to the Bureau of Labor Statistics in the US, 120,000 jobs were added. This news is good for Canada, and the loonie advanced accordingly.
Because the US is Canada’s largest export market, the news that the employment picture is improving in America is positive for the loonie. It’s also helpful that US consumers seem ready to open their wallets this holiday shopping season, boosting their spending.
Canadian dollar is also benefitting from a general improvement in risk appetite. The situation in Europe looks as though it’s moving toward recovery — at least for now — and that is helping. Equities in the US are higher on good news. If the US economy recovers, Canada is likely to benefit.
Also contributing to Canadian dollar strength are higher oil prices. The US gets most of its oil from Canada, and the resource is a source of revenue for Canada. Higher oil prices generally help support the loonie in Forex trading.
Canadian dollar is lower right now, but paring losses against the greenback, with the greenback slipping a little bit right now.
at 16:40 GMT, USD/CAD is slightly higher, up to 1.0166 from the open at 1.0139. GBP/CAD is lower at 1.5848, down from the open at 1.5911.
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