November 5, 2021

This is why the Loonie Dollar Sinks Lower!

 The loonie dollar traded lower as the US dollar continued to maintain its strength towards weekend trading.

Aside from the U.S. NFP jobs report, investors also turned their attention to Canadian jobs data that will also be published in tonight’s New York session.

Analysts still appear to see weak growth in the Canadian job market, which is expected to show lower growth in October.

Meanwhile, the unemployment rate is forecast to decline slightly to 6.8% from 6.9% recorded the previous month.

In September, the Canadian economy unexpectedly added more jobs than expected. Therefore, it is not impossible if the same situation occurs tonight.

At the time of writing, the Canadian dollar is trading gloomily at a nearly four -week low at around 1.24650 against the US dollar.

Also influencing loonie dollar trading was the decline in world crude oil prices to a four -week low after being impacted by an unexpected increase in U.S. supplies.

However, OPEC +’s decision to maintain an additional production of 400,000 barrels a day helped the black commodity trade from falling lower.