The Canadian dollar rebounded to the upside against the U.S dollar after the cheerful employment data from Canada, forcing the U.S. dollar to retreat below opening level, especially after the sterling pound advanced against the dollar and the euro, where investors are weighing the expansion of the APF quantity positively with hopes that further stimulus could support growth to improve and the pace of recovery.
Canada released the jobs report for September today, where the unemployment rate unexpectedly dropped to 7.1% from 7.3%, in the time the Canadian economy added 60.9 thousands jobs to labor market from the previous shed of 5.5 thousands jobs, which supported the Canadian dollar to rebound against the U.S. dollar, which set the highest against the Canadian dollar on Tuesday since September 2010.
The U.S. dollar is very volatile and mixed today ahead of the jobs report, affected by the volatile euro in addition to the strengthening pound and Canadian dollar, where after reaching a high of 78.72 the U.S dollar reverse to the downside setting the lowest at 78.41, noting that the index opened the session in Asia at 78.58 and trades now around 78.47.
Concerning the USD/CAD, the pair opened the session today at 1.0372, and advanced to a high of 1.0418, but then reversed to the downside after the upbeat unemployment figure to reach a low of 1.0325. The pair trades now around 1.0330.
The sterling pound reversed sharply to the downside yesterday after the Bank of England announced further stimulus to support the sluggish pace of growth; however, investors weighed this movement positively as they considered those measures should support the faltering recovery and growth, and would support the United Kingdom economy to rebound.
The royal currency gained strength today against the U.S. dollar, where the GBP/USD pair opened the session today at 1.5442, and recorded the highest at 1.5553 and the lowest at 1.5422, and is currently trading around 1.5542.
On the other hand, the common currency fluctuated heavily today against the dollar and lost strength against the sterling pound, especially after the gap between the German Chancellor, Angela Merkel and the French President, Nicolas Sarkozy seems to widening ahead of the summit on Sunday, where as Merkel said that the European bailout funds (EFSF) should be treated as the last resort, the French president hinted that French banks need to be recapitalized by this facility.
Regarding the EUR/GBP, the pair declined sharply today reaching a low of 0.8643 after opening the session at 0.8697. The pair is currently trading around the lowest level.
Concerning the EUR/USD, the pair is still volatile since opening the session at 1.3435, recording the highest at 1.3463 and the lowest at 1.3402. The pair is trading now around 1.3436.