The Canadian dollar weakened today as crude oil declined and on concerns that nation’s unemployment rose last month. The currency continued to advance versus the Japanese yen as Canadian economic growth accelerated.
Crude oil futures dropped as much as 1 percent to $96.51 per barrel in New York. Analysts fear that next week’s report will show an increase of unemployment from 7.1 percent to 7.2 percent.
Losses were limited and the rally of CAD versus JPY persisted as Canadian gross domestic product expanded 0.3 percent in November, beating the forecast of 0.2 percent and the October advance of 0.1 percent. On top of that, positive macroeconomic data from the United States bolstered the positive market sentiment, supporting the appeal of commodity currencies.
USD/CAD traded at 0.9975 as of 18:49 GMT today, rising from the opening level of 0.9968, but falling from the maximum of 1.0002. EUR/CAD was at about 1.3626 after opening of 1.3543 and touching the high of 1.3705 (the highest since December 2011). CAD/JPY advanced from 91.92 to 92.69 — the highest settlement since May 2010.
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