Canadian Dollar Hits Back against USD Rise

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The Canadian dollar (CAD) has been losing ground against the US dollar ( USD ) since the beginning of this week. Last Friday's Canadian GDP figure, which revealed a quarterly contraction of 0.2%, has been pulling down harshly on the value of the Loonie. But today's employment data out of America's northerly neighbor has given traders a reason to hit back against the buck in today's trading.

The value of the USD/CAD was recently trading at a 3-year low of 0.9445 this past Monday. Since last Friday's GDP publication, the pair had risen to as high as 0.9711; a 2.8% jump over four days.

With this afternoon's employment data out of the Canadian economy, the CAD fought back with a strong push back towards 0.9595.

The organization Statistics Canada this morning released two significant employment figures which have given traders impetus to buy back into the Loonie. The 12:00 GMT publication of Canadian Employment Change and the official unemployment rate both revealed highly optimistic figures which allowed the CAD to hit back against the USD.

The Canadian unemployment rate fell from 7.7% to 7.6% since last month, but such a figure is considered a lagging indicator which merely completes the story already told in the weeks prior. However, the Employment Change report, which is similar to the American Non-Farm Payrolls ( NFP ), revealed the addition of 58,300 new jobs to the Canadian economy.

The two numbers together have collectively pushed down hard on the USD/CAD. The pressure mounting atop the pair as a result may continue to provide bearish sentiment through the coming week.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

Referenced Stocks: NFP , USD

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