Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

The Loonie weakens following a decline in employment numbers.

CAD - Canadian Dollar

According to Statistics Canada, employment held steady in October, following two consecutive months of growth. The unemployment rate was unchanged at 5.5 percent. However, the employment change came in at -1.8 K versus the expected number of +14.7 K. This unexpected decrease in employment data made the Loonie fall (USD/CAD increased to 1.3222 from 1.3202). On a year-over-year basis, employment grew by 443,000 or 2.4 percent, driven by gains in full-time work. In October, employment increased in British Columbia and Newfoundland and Labrador and was little changed in the other provinces. Employment declined in manufacturing and construction. At the same time, employment was up in public administration and finance, insurance, real estate, rental, and leasing.

Key Movers

The USD/EUR pair has increased by 0.2 percent (stronger U.S. dollar) due to some doubts about the U.S. - China trade deal. Larry Kudlow, White House economic adviser, had said that tariff agreements and concessions would be part of a "phase one" trade deal. At the same time, Beijing's announcement that the U.S. and China have mutually agreed to roll back tariffs as part of a "phase one" have lifted financial markets. However, there are some doubts about how much the Trump administration has agreed to give. Presidential Trade Adviser Peter Navarro told Fox, "There is no agreement at this time to remove any of the existing tariffs as a condition of the phase one deal."

The cost of the trade war is showing a continued contraction in China's imports and exports. However, China's imports and exports fell less than expected in October as optimism increased about a "phase one" deal with the U.S. Exports fell 0.9 percent in dollar terms in October from a year earlier, while imports dropped by 6.4 percent.

The Aussie dollar decreased after the central bank published a slightly dovish Statement on Monetary Policy. The AUD/USD pair falls 0.49 percent at the time of this writing.

Expected Ranges

USD/CAD: 1.3213 - 1.3250 ▲

EUR/CAD: 1.4550 - 1.4607 ▲

GBP/CAD: 1.6865 - 1.6947 ▲

AUD/CAD: 0.9056 - 0.9091 ▼

NZD/CAD: 0.8335 - 0.8397 ▼