Loonie makes gains to end the week

Key Movers

Demand for the US dollar was down slightly to start the last trading session of the week. Rising costs for commodities and the US Economy showed strong jobs numbers, allowing traders to move their money away from USD.. The Non-Farm Payroll data for November released this morning showed an additional 199,000 jobs added last month. This was stronger than the 180,000 consensus that had been expected. Unemployment rates also fell, down to 3.7% from the previous 3.9%.

The EUR/USD pair showed some bearish movements as it traded near the key support level of 1.0760. While the euro traded neutral this morning looking for a clear direction amid inflation data out of the UK and Eurozone regions. Early inflation data from the UK and Europe showed German inflation easing in November, bolstering the case for a peak in eurozone interest rates. There have been rising expectations that the European Central Bank (ECB) will start cutting interest rates next year and today’s data supported this sentiment.

A UK survey of around 2,000 people expected goods and service costs to fall. Although a small sample size for the currency market, they results are small indicators as to what moves its central bank will make next.

The AUD followed the direction of improving risk sentiment today. The Reserve Bank of Australia’s (RBA) Andrea Brischetto noted the risk of financial stress on Australians with the continuing high interest rates and increasing unemployment. While this remains at the center of the RBA’s discussions, Australian households are coping, showing the resilience of the Australian economy.