Canadian Dollar Falls Against Dollar, Later Rallies Despite Upbeat US Jobs Data

The Canadian dollar fell against the dollar leading up to the US non-farm payrolls report’s release but managed to recoup some of its losses afterwards. The USD/CAD currency pair fell after the release but later rallied as the greenback clawed back some of the loonie’s gains boosted by the falling US equities.
The USD/CAD currency pair rallied to a high of 1.2737 before the non-farm payrolls release before falling to a low of 1.2645 after the report but had recouped all its losses by the time of writing.
The currency pair rallied higher earlier today as the loonie trailed the US dollar boosted by rising Treasury yields after Jerome Powell, the Fed Chair, downplayed the surging yields. The Canadian dollar remained on the backfoot despite the rally in crude oil prices as tracked by the West Texas Intermediate, which hit a high of 66.21 today. OPEC and its allies’ decision to maintain their current oil output cuts triggered a rally in oil prices, but this was not enough to stop the dollar’s rise.
The release of the upbeat Canadian international merchandise data for January by Statistics Canada fueled the pair’s temporary decline. The upbeat Canada Ivey purchasing managers index (PMI) for February also boosted the loonie.
The upbeat US non-farm payrolls report for February had a muted initial impact on the pair. According to the Bureau of Labor Statistics, the US added 379,000 jobs beating consensus estimates of 182,000 jobs.
The currency pair’s performance over the weekend is likely to be affected by crude oil prices and geopolitical events.
The USD/CAD currency pair was trading at 1.2665 at 17:32 GMT having dropped from a high of 1.2737. The CAD/JPY currency pair was trading at 85.47 after rising from a low of 84.94.
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Original from: www.earnforex.com