Canadian dollar holds ground against strong dollar amid modest rise on exports

Canadian dollar against strong dollar

The Canadian dollar stood firm against a resurging US dollar on Tuesday to finish near the flat line amid modest surge in the country’ export sector, which logged a third consecutive rise.

Rolling Thrice

The Lonnie closed just below the flat line as it was slightly changed 1.3410 or 74.55 cents, slightly down from the previous close of 1.3416, or 74.57.

Despite the advance on its American counterpart, the Canadian dollar was able to hold its ground and pared only little gains as the country’s third consecutive trade surplus lifted the currency on a steady position.

The government reported on Tuesday that its domestic data rolled thrice as it registered $807-million trade surplus in January, beating analysts’ expectations of just $700 million positive balance, on the backs of a 0.5% jump in exports and 1.0% expansion on its volumes.

With the news, the Lonnie even traded at an intraday high of 1.3383 and went down at 1.3436 before giving up some gains.

Investors on the Canadian dollar are now turning their focus on the Canadian jobs data due on Friday even though a strong data would not affect the Bank of Canada’s monetary policy. Labor market in the country has improved amid a strong employment gain, tallying 48.3 and 53.7 thousand jobs in December and January respectively.

Markets are also keeping their eyes on US non-farm payroll to be released on Wednesday that could solidify the sentiments on a potential interest rate hike this month.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *