The Euro soared against the Canadian Dollar on Friday following the release of a report which showed that the Canadian economy lost jobs, raising the prospect that the Canadian Central Bank may have to cut interest rates to maintain economic growth.
The ‘Loonie’ had been making gains against a number of peers over the past two days after the Canadian Central Bank kept interest rates unchanged, as it cited a positive economic outlook for growth and inflation.
According to Statistics Canada employment in the North American nation fell by 7,000. The figure disappointed economists who had been forecasting a rise of 15,000 jobs created. The overall unemployment rate remained steady at 7%.
The ‘Loonie’ also slid against its US relation after Canada’s biggest trading partner posted a better than forecast nonfarm payrolls report. According to the data US employers created 175,000 jobs last month, beating forecasts for a rise of 129,000.
The Canadians losses were restrained somewhat by a separate report which showed that that Canada’s trade deficit narrowed to C$0.18 billion in January, from C$0.92 billion in December, whose figure was revised from a previously estimated deficit of C$1.66 billion. Analysts had expected the trade deficit to expand to C$1.60 billion in January.
The Euro continued to find support from yesterday’s ECB interest rate decision and policy meeting. The single currency was further supported on Friday by a report which showed that German industrial output expanded more than forecast in January.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3870 ,
Euro,,British Pound,0.8290 ,
Euro,,Australian Dollar,1.5230 ,
Euro,,Canadian Dollar,1.5369 ,