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 link  
Aussie dollar up on Chinese data

The Australian dollar remains firmly above the US70c mark in today’s trading session after a strong round of data out of China alleviated...

Pound may hit $1.37 by years end

The British pound is expected to face increased volatility over the coming months as the deadline approaches for the UK to leave the EU at the end...

Has the US dollar peaked?

The US dollar has made significant gains against all the major currencies over the last month as worries over trade tensions between...


Pound may suffer in the long term

The British pound continues to power ahead in today's trading session after yesterday's developments in the British parliament that many see as ending...

Gold needs to remain above $1300

The gold price has staged a substantial rally since last week after the US Federal Reserve latest board meeting where they stated that any move...

Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...


D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...

  


Share it on:   or