The Canadian Dollar has had a wild day on the markets. A CAD pairing as a prime example of this would be GBP/CAD where rates experiences highs of 2.016 and lows of 2.004 – more than a cent! The main reason for this movement was Canadian unemployment data released today.
While 12,000 new jobs were added to the economy in August, much higher than the 6,000 expected, the overall unemployment rate rose to 7% from 6.8%. The reason for this is simple. In August many students who graduate suddenly become part of the assessed employment pool. So while more jobs were added than lost, the amount in the pool available to take those jobs up increased. This caused tension and indecision from those looking to invest or relieve themselves of Canadian Dollars following the announcement, hence the significant volatility. We essentially ended the day as we started, with little change in the value of CAD.
Significant gains were, however, made on USD/CAD due to stronger employment data on the other side of the border.
It seems that the Canadian Dollar is still following its current strengthening trend against most of its major currency partners. If anyone would like a free quote or some advice on any currency transfers involving the Canadian Dollar in the next few weeks feel free to email me over the weekend on [email protected]