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Canadian Dollar Rallies Against US Peer Despite Weak Jobs Data

November 6, 2020 at 18:23 by Simon Mugo
Canadian coins on Canadian dollar bills

The Canadian dollar today rallied against its US peer as the US Presidential election continued to weigh on the greenback overshadowing the positive jobs data. The USD/CAD currency pair today fell to new 10-week lows as the loonie got an edge against the greenback as Joe Biden secured a significant lead over incumbent President Donald Trump.

The USD/CAD currency pair today fell from a high of 1.3096 in the Asian session to a low of 1.3020 during the American session and was near its daily lows at the time of writing. 

The currency pair’s initial decline was fueled by the greenback’s weakness as tracked by the US Dollar Index, which fell to new lows of 92.18 today. The loonie’s rally against the greenback was not fueled by crude-oil prices, which were falling for most of today, as tracked by the West Texas Intermediate. The release of the Canadian labour force survey for October showing that the country added 83,600 jobs versus the consensus estimate of 100,000 jobs had a muted impact on the pair. According to Statistics Canada, the county’s unemployment rate fell to 8.9%, which was lower than analysts estimates set at 8.8%.

The release of the upbeat US non-farm payrolls report by the Bureau of Labour Statistics had a muted impact on the currency pair, which kept falling. A speech by the Bank of Canada Governor Tiff Macklem also had a muted impact on the pair.

The currency pair’s future performance is likely to be affected by the outcome of the US Presidential election.

The USD/CAD currency pair was trading at 1.3031 as at 18:22 GTM having fallen from a high of 1.3096. The CAD/JPY currency pair was trading at 79.26, having risen from a low of 78.95.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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