By TraderVox.com
Tradervox.com (Dublin) –The Canadian dollar rose against the US dollar the most in six weeks after crude oil climbed on speculation the European Central Bank may cut interest rate. The advance was also supported by the Chinese central bank decision to help the Euro region in dealing with the debt crisis. The loonie has advanced against most of its 16 major counterparts as commodity related currencies gain traction in the market. Risk appetite has emerged in the market since Friday, but it has been hampered by the recent opposition to the EU Summit decision.
Joe Manimbo of Western Union Business Solutions in Washington said that the current surge in commodity currencies is as a result of speculations that central banks around the world will offer stimulus to spur growth in the global economy. Shane Enright, an Executive Director at Canadian Imperial Bank of Commerce in Toronto said that the advance of the Canadian dollar will determined further by the US payrolls data expected on July 6. On the same day, the Canada’s Jobless report will be released and these two reports will determine how the Canadian dollar closes the week.
It is expected that jobless rate remained unchanged in June from May 7.3 percent; this report will be released by the Statistics Canada agency on July 6. Economists are also projecting an addition of 5000 jobs in the economy as compared to 7,700 jobs in May. In US, a government report is set to show that employers added less than 100,000 jobs in June.
However, the Canadian dollar added 0.5 percent against the dollar to trade at C$1.0122 as crude oil climbed by 5.1 percent to trade at $88.04 a barrel in New York. Further, the currency advanced as economists predict the European Central Bank will cut interest rate by 0.25 percent to set a new interest rate at 0.75 percent when they meet later this week.
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