US Dollar to Canadian Dollar (USD/CAD) Exchange Rate hits 5-Year High on US Labour Market Data
Despite traders having pared the US Dollar gains amid anxieties that the recent bullish run was not deserved purely on ecostats; the US Dollar to Canadian Dollar exchange rate has reached a fresh five-year high on Friday’s impressive US labour market data. The Canadian Dollar, meanwhile, has struggled against a distinct lack of influential economic data this week.
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The US Dollar to Canadian Dollar exchange rate is currently trending in the region of 1.1265.
US data on Thursday printed reasonably positively. Continuing Claims fell beyond the market consensus and Initial Jobless Claims showed a positive declination despite the median market forecast of an increase. However, this positive data had little effect on the US Dollar as traders opted to trim the gains made from the recent bullish run. The high performance of the US Dollar was as a result of investor speculation of a rate hike in 2015 and not necessarily warranted by the recent US ecostats results.
A complete absence of economic data pertaining to Canada on Thursday was not unusual this week, with very few Canadian economic publications helping the ‘Loonie’ (CAD) recover from cooling Gross Domestic Product growth. Having managed to stay afloat by tracking the gains made by the US Dollar, the Canadian Dollar depreciated on Thursday as the ‘Buck’ (USD) softened.
The US Dollar to Canadian Dollar exchange rate has hit a low today of 0.9435.
Friday’s US domestic data has seen the ‘Greenback’ claw back the losses from over-purchase. Change in Non-farm Payrolls was forecast to increase from 180, 000 to 215, 000, but the actual result showed a surge to 248, 000. Also Unemployment Rate showed a positive declination to 5.9% despite the market consensus of a continuation of the previous figure of 6.1%.
The US Non-Manufacturing Composite improved upon the median market forecast of a drop to 58.5 from 59.6, with the actual result falling to 58.6.
A solitary Canadian domestic data publication on Friday printed disappointingly. International Merchandise Trade (Canadian Dollar’s) was forecast to fall from 2.20 billion to 1.60 billion, but the actual result showed a huge declination to -0.61 billion.
Forecast for the US Dollar to Canadian Dollar Exchange Rate
Given that all of the economic data publications have produced results on Friday it is very likely that the US Dollar to Canadian Dollar exchange rate will continue to trend higher over the course of the weekend. The only possibility of an alteration would be if there was an impromptu economic or geopolitical event.