Canadian dollar enjoys strong US economy

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Trading the Canadian is only a bit about oil, but more about the US economy: stronger demand from the United States means a strong Canadian economy and a stronger Canadian dollar.

The instant reaction from the excellent jobs report in the US was a stronger USD across the board, but after the dust settled and Americans get ready for the 4th of July BBQ, the stronger currencies are making a comeback, and the loonie is certainly one of them.

USD/CAD is now back down to 1.0638, heading towards the cycle lows after bouncing at 1.0680.

We can see here the recovery path of the Canadian dollar, as seen in a very nice downtrend of USD/CAD on the daily chart:

Canadian dollar after strong US Non Farm Payrolls July 3 2014

The next week is very important for the C$, with building permits, the Ivey PMI and most importantly the Canadian jobs report, which gets the full stage to itself.

For more, see the C$ prediction.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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