Canada’s Employment Improves Beyond Expectations, Loonie Profits

The Canadian dollar climbed today, erasing earlier losses against the Japanese yen, as Canada’s employers added much more jobs than was predicted by analysts and as the unemployment rate unexpectedly dropped.

Canada’s employment increased by 82,000 jobs in March, following the decline by 2,800 jobs in February. That’s significantly above the expected change by 11,300 jobs. What’s more, the unemployment rate was expected to rise from 7.4% to 7.5%, but it fell to 7.2% instead. Another positive data was the growth of building permits by 7.5% in February, following the drop by 11.4% in January.

The loonie was under pressure as concerns about the problems with European debt were returning. Nevertheless, the positive domestic macroeconomic data, coupled with positive economic reports from the United States, outweighed any negativity that was present on the Forex market.

USD/CAD was down from 0.9960 to 0.9930 and EUR/CAD fell from 1.3089 to 1.2968 as of 23:12 GMT today. CAD/JPY advanced from 82.71 to 82.85, following the slump to 81.86.

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