This past week was a much better one for the Canadian dollar, as it gained over 1.5% on sterling following encouraging data in the form of Canadian growth figures on Tuesday. Yesterday provided further relief for Canada as the currency strengthened nearly 1% against the sterling and over 0.5% against the US dollar. This improvement can be attributed to better-than-expected trade balance results, as well as influences from outside of Canada, as the world saw a surge in oil prices, one of Canada’s biggest exports. Although Canada’s currency has seriously suffered over the last year it is the depreciation of the Canadian dollar that has led to such good trade balance results today, as their exports have been cheaper to the rest of the world. Today is very busy with the release of three pivotal indicators, including the unemployment rate. Nearly all that data is expected to be below last month’s, so failure to hit expectations could diminish all of yesterdays’ growth.
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