Home Daily Commentaries CAD makes gains amid oil and jobs beat

CAD makes gains amid oil and jobs beat

Daily Currency Update

The Canadian dollar is up against the USD this morning as positive risk sentiment in the markets is boosting oil prices back over $70 a barrel.  Also lending a hand to the CAD was stronger than expected jobs numbers out of Canada.  StatsCan reported that the Canadian economy added 41,000 jobs last month which is double the expectation of 20,000 new positions added.

Key Movers

The USD is ending the week down as markets react to an uptick in oil prices and more positive than expected jobs numbers in the US. The US economy added 235,000 new positions in April, better than the expectation of 185,000 new jobs. This positive data could impact deliberations at the next Federal Reserve meeting but falls lower on the list of priorities than the recent bank defaults and the looming prospect of the US government hitting its debt ceiling. For now, investors are taking their money out of bonds and buying equities, impacting the USD to the downside.

The Euro continued to slide against the greenback in overnight trading as markets are hopeful for a pause in rate hikes from the European Central Bank (ECB). In its rate hike announcement yesterday, the bank included language that leaves the door open to the possibility of only one more bump of 25 points before they take a break from rate hikes.

Expected Ranges

  • EUR/CAD: 1.4781 - 1.4947 ▼
  • GBP/CAD: 1.6924 - 1.7065 ▼
  • AUD/CAD: 0.9038 - 0.9103 ▼
  • USD/CAD: 1.3417 - 1.3548 ▼