CAD boosted by jobs report

10 June, 2019

The Canadian dollar has continued to rally against its US counterpart, following on from Friday’s sold gains after a better than expected jobs report which may give the Bank of Canada the option to leave interest rates if need be as the year unfolds

The Canadian economy added 27,00 net new positions in May, marking, which follows April’s solid performance while the unemployment rate fell to a record low of 5.4 percent

“The labour market looks like it is holding up, so I think they (the Bank of Canada) are very comfortable with policy rates where they are,” said Andrew Kelvin, chief Canada strategist at TD Securities.

“The bank has, I think, signaled with a fair bit of conviction that they are very comfortable with the Canadian outlook.” he added.

Chances of an interest rate cut this year have dropped slightly but still remain at more than 80 percent.

New’s over the weekend that US President Donald Trump has decided to withdraw the planned tariffs against Mexico also helped the Canadian dollar as it was feared that the new measures may have hurt the recently signed trade agreement between the US, Canada and `Mexico

Over 2 thirds of Canada’s exports are sent to the US so any issues with the trade deal would have had a profound affect on the Canadian economy.

The oil price has also made a substantial recovery over the last 3 days which has also spelt good news for the loonie as the Canadian economy is closely connected to the price of oil as it is one of the country’s major exports.


Source  
Gold faces the calm before the storm

The gold price is likely to jump a further 20 percent this year if geopolitical tensions, such as the situation currently between Iran and the US flare up again...

Escalation of Trade Wars to help gold

The gold price has remained in a tight trading range over the last 3 weeks as the market tries to figure out whether the US will eventually reach a trade...

Breakdown in trade talks to help gold

The gold price remains further subdued in today's trading session after the latest minutes meting from the US Federal Reserve left the market predicting that...


Gold down but rally not over

As the year closes out, gold is expected to receive a significant boost according to some analysts on the back of a weaker US economy which may...

Impeachment talk boosts gold

The gold price hit is highest level in 3 weeks yesterday after calls for the impeachment of US President Donald Trump left financial markets...

Oil to hit $75

The oil price surged as high as 20 percent is yeaterday’s trading session after an attack on Saudi Arabia’s biggest oil field removed more than 5 million...


Gold headed for $1600

The gold price remains steady today after turning back from what was beginning to look like a solid rally yesterday after words by US President...

Euro awaits Jackson hole

Despite all the pressure facing the European economy the Euro has managed to remain above the $1.10 level, but it seems the market is predicting...

Gold's next target is $1600

The gold price has taken a breather over the last few days after rallying more than $100 dollars in the space of 2 weeks and some...