Canadian Dollar Advances against the US Dollar

By TraderVox.com

Tradervox (Dublin) – Canadian dollar advanced against the greenback after the government released a report showing that employment increased by most last month since 2008. This is the first time in a month that the Canadian dollar has registered a weekly gain in a month. Analysts have taken this to mean that the Canadian economy is firming. The Canadian dollar had earlier lost against the dollar due to concerns about the European debt crisis. The gain against the US dollar also came as Egan Jones reduced the US credit rating to AA citing the increased US debt that is at 100 percent of the gross domestic product.

The government report showed that the increase in employment rate was seven times more that what most analysts had expected. The loonie was able to shake off concerns about the effect of the European sovereign debt crisis that is expected to weigh on global economy. According to Blake Jespersen, a director at Bank of Montreal in Toronto, the huge number released by the government has caught the attention of the entire market, which has resulted to the trend reversal as traders buy more Canadian dollar. The Canadian dollar had traded between 98.42 cents and C$1.0054 since the end of January but the recent report has pushed the Canadian dollar to a 0.6 weekly gain against the dollar. The loonie have also increased against the yen, peso, krone, and the Australian dollar.

The loonie advanced by 0.3 percent to trade at 99.31 cents per one dollar to extend its weekly gain to o.6 percent. Earlier, the Loonie had lost by 0.4 percent against the dollar trading at 99.98 cents after the concerns of the EU sovereign debt crisis.

The report from Statistics Canada have shown that 82,300 jobs were created in March against and expectation of an increase of 10,500. This has lowered the unemployment rate from 7.4 percent to 7.2 percent. This pushed the loonie to increase against the euro for the fourth day. However, the euro has been weak against most peers due to concerns in the region that have been aggravated by the recent low performance of Spain government bond in a bond auction.

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