Another Loonie Gain Against the US Dollar for Canadian Markets to Boast About

After the U.S dollar has fall short to meet up expectations, the Canadian dollar on the other hand the loonie enjoyed a week long high against the US dollar. The U.S faced a drop in its interest rate owing to the fact that unemployment is on the increase.

Things have been looking good for the Canadian market in recent times as its deficit during the month of April reduced to $2.94% billion. The good news continued to flourish as the rates of both exports and imports continue rising at a steady pace, with the latter growing just a bit higher.

An economist at CIBC Capital Markets Nick Exarhos stated that the general expectation was that the Canadian economy will be curtailed to a considerable rate. He has been hoping for a 0.3% growth in the domestic product for the month.

“The Bank of Canada is excited to see the way profits will flourish again during the third quarter and the impacts it will have on the fiscal stimulus”. said Exarhos.

The bank of Canada however is ready to receive a not so strong currency but with the hope that things will change along the way. This will “act as a factor in weakening the Canadian dollar,” not withstanding the fact that the U.S job growth is still on the decrease.

A rise on the U.S economy will be very difficult to reach at this point in time as the unemployment rate is still a hindrance in increasing the interest rates and there is no sign of any change to help the situation.

The Canadian dollar was selling at 77.21 U.S cents at 10.24.am which was in contrast higher than that of Thursday which was not far behind at 76.31 U.D cents.

Canadian government bond prices were higher across the maturity curve, with the two-year price up 7 cents to yield 0.525 per cent and the benchmark 10-year rising 57 cents to yield 1.188 per cent. The 10-year yield hit its lowest since April 7 at 1.175 per cent.