Canadian Dollar Ends Trading Soft

The Canadian dollar ended the Friday’s trading session very soft against its major peers. There were plenty of reasons for the currency to go down.

One of such reasons was the drop of crude oil, the commodity that often strongly influences the loonie. Another reason were the rising chances for an interest rate hike from the Federal Reserve. News about nuclear tests by North Korea added to the atmosphere of risk aversion on the Forex market.

Earlier, there were hopes that employment data should be supportive for the Canadian currency. Indeed, the report was good in part, showing growth by 26,200 in August from July, which was bigger than the analysts’ median estimate. At the same time, it showed an unexpected increase of the unemployment rate from 6.9% to 7.0%.

USD/CAD rallied from 1.2936 to close at 1.3048. EUR/CAD advanced from 1.4565 to 1.4653. CAD/JPY dropped from 79.20 to 78.68.

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