Euro Falls, US Dollar Index Rises, and Canadian Dollar Is Flat
Canadian dollar is trading nearly flat
The US dollar-Canadian dollar currency pair is inversely related to the Canadian dollar. It was trading nearly flat on December 4, 2015—except for the upticks during the release of the data from the Canadian and US fronts. The Canadian domestic data were on a negative note. The positive US data release had a compound effect on the currency pair. It rose to a high of 1.3417 at the time of the data release. The pair ended the day at 1.3362.
Employment data disappoint
According to the report published by Statistics Canada on December 4, the employment fell by 36,000 in November. The major fall in the employment happened in youth between the age of 15–24. The report also showed a rise in the number of people who are self employed. There was a fall in the employment in the public and private sectors. The unemployment rate also rose. It rose to 7.1%. There was a major fall in the employment in public administration. It fell by 33,000 in November compared to a rise of 32,000 in October. This wide change was mainly due to the Federal elections. The elections create lot of temporary jobs.
Impact on the market
The iShares MSCI Canada ETF (EWC) rose by 0.17% on December 4, 2015. The Guggenheim CurrencyShares Canadian Dollar ETF (FXC) fell by 0.28%.
Canadian ADRs (American depositary receipts) trading in the US markets were on a mixed note after the disappointing employment data. The Canada-based ADRs, Canadian Natural Resources (CNQ) and Suncor Energy (SU) fell by 0.69% and 2.1%, respectively, on December 4, 2015. Royal Bank of Canada (RY) rose by 0.21%.
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