Canadian Dollar Treads Water Despite Data

09 June 2017 7:06:14 AM


Lower oil prices had earlier put pressure on the Canadian Dollar; however, upbeat comments from the Governor of the Bank of Canada helped to temper losses. Stephen Poloz had said that recent signs that the Canadian economy were strengthening offered him some comfort. He did say, however, that a hike in consumer debt and a housing market out of kilter indicated that Canadian households remained vulnerable. One economist expects that an interest rate hike from the BOC is likely to be priced in more aggressively, especially if inflation edges higher. 

As reported at 10:28 am (JST) in Tokyo, the USD/CAD was trading at C$1.3514, down 0.03%; the pair has ranged from a low of C$1.3506 to a peak of C$1.3521 in today’s trading session. The EUR/CAD is trading at C$1.5126, down 0.11% while the GBP/CAD is higher at C$1.72589, up 0.16%.

Canada Labor Data Eyed

Later today, Statistics Canada will release the Canadian unemployment rate report for the month of May with expectations that the rate will edge up to 6.6% from 6.5%. The Net Change in Employment is also due out with forecasters calling for a rise to 11.0K in May from 3.2K in April. May’s housing starts fell in Toronto, considered one of Canada’s key real estate markets. Globally, oil prices fell on Thursday to $45.64 per barrel of crude; Canada is highly dependent on oil exports for economic growth.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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