Forex Outlook: Canadian Dollar Slips Down On Weak Job Data

The Canadian dollar slumped down the most in seven weeks. Investors expect that in order to support economic growth, the Bank of Canada might decrease the interest rates

The Loonie, as the Canadian dollar is named for the image of the aquatic bird on the C$1 coin, slipped down after almost hovering near the strongest level versus the greenback, the U.S.dollar. This was influenced by the fall in the employment rate by 28,900 in April, as reported by the Statistics Canada.

The Canadian dollar slid down by 0.6 % to C$1.0898 against the U.S. dollar at 5 p.m. in Toronto after moving down by 0.8 %, the major drop from the time of 19th March. The decline pared the currency’s second weekly gain to 0.7 percent. The Canadian dollar ascended on May 9 to the strongest level at $1.0814, since 8th Jan. .

Data from a survey taken from economists predicts that the Canadian dollar will slide down to C$1.13 for the year-end while it will bounce back to C$1.11 at the end of 2015.

Forex Breaking New- The Canadian Dollar Shows Uptrend Move On Strong Job Growth

 With surprising results of fall in unemployment rate, the Canadian dollar moves to a strong position of six-week high. Among the 16 major fellow currencies, the Canada was able to make it at 10 after the data showed the increase in addition of workers.

Speculations are more on the CA with the Bank of Canada expected to meet on next month April 16th. Investors are keeping a keen eye on the recent quote by the BOC Governor, Stephen Poloz that the central bank will reduce the rate in case of any weakness in the economy.

Investors speculate that a neutral speech by the BOC Governor, Stephen Poloz rather than staying dovish will fetch some more gains to the Canadian dollar.