The Canadian Dollar is trading at 3.26 against the Malaysian Ringgit this morning, up 0.07% with a YTD change of 2.78%. The pair’s open rate was 3.2615, slightly down from their previous close at 3.2617. CAD/MYR is expected to move between 3.2576 and 3.2640 throughout the day, their 52-week range is forecasted to move between 2.98 and 3.34.
Over the last month, CAD/MYR has gained strength, moving from the 3.17 level to the 3.26 mark. As the currency pair makes its way to the 3.30 support level, bulls will be watching to see if crude oil prices will continue to contribute to the loonie’s success.
The Canadian economy is recovering from the pandemic quicker than anticipated but employment rates are still low which is holding CAD back from its full market potential.
The Organization of Economic Co-operation and Development (OECD) is a group that promotes trade between 37 advanced economies and recently published data about unemployment rates for their member countries; Better Dwelling reported that “Canada is significantly behind its G7 peers, with only a few OECD countries worse off. Canada is also seeing the unemployment rate rise, which its biggest trade partner is seeing the rate fall.”
Canada’s unemployment rate was one of the worst rates compared to any other advanced economy, falling to 9,4%, which was 8.8% higher compared to the previous month. “A sharp uptick brought the rate 67.86% higher than the same month last year”
Malaysia’s unemployment rate also climbed to a 7-month high of 4.9% at the beginning of the year, increasing 1.2% from the previous month. FX Street reported that “while the construction sector turned around to register an increase in employment, both agriculture and mining & quarrying sectors continued to record declines in hiring for seven months.”
With both countries starting to resuming economic activities, “the labour market should regain momentum from 2Q21 onwards.” CAD/MYR should experience continued growth as vaccinations continue to be distributed and global economies begin to go back to normal again.
By Surina Nath