CAD Logs Massive Gains, Touches Highest Since 2015 vs. USD

The Canadian dollar surged against its US counterpart today, touching the highest level since June 2015. The currency also posted massive gains versus other majors, seemingly without any apparent reason.

The gains versus the greenback could be easily explained by the lackluster US employment data. The rally versus other rivals is harder to understand, especially as prices for crude oil, Canada’s major export, dropped. The possible reason for the rally was yesterday’s positive GDP report.

As for today’s data, there was only one report — the IHS Markit Canada Manufacturing PMI. It showed a mild drop from 55.5 in July to 54.6 in August. The next week will be far more eventful, with a couple of important reports and a central bank meeting.

USD/CAD dipped from 1.2481 to 1.2394 as of 18:11 GMT today, and its daily high was at 1.2349. EUR/CAD dropped 1% from 1.4863 to 1.4712. CAD/JPY jumped 1% from 88.08 to 88.93.

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