Canada’s dollar strengthened versus its U.S. counterpart after payrolls increased more than forecast in America, the nation’s biggest trade partner.
The currency rose versus most major peers even after Canadian job growth slowed more than forecast last month. The U.S. data boosted speculation America’s economic recovery is gaining momentum.
“People will expect some sort of knock-on effect from job growth in the U.S., which, while it was moderate, is certainly on the plus side of the ledger,” said Dean Popplewell, head analyst in Toronto at the online currency-trading firm Oanda Corp. “Canada certainly disappointed.”
The Canadian currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, gained 0.3 percent 99.40 cents per U.S. dollar at 8:57 a.m. in Toronto after weakening as much as 0.2 percent earlier. One Canadian dollar buys $1.0060.
The last U.S. jobs report before next week’s presidential election showed a net 171,000 workers were added to payrolls in October after a 148,000 gain in September that was more than first estimated. The Labor Department figures issued the data today in Washington. The median forecast of 91 economists surveyed by Bloomberg called for an increase of 125,000. The U.S. jobless rate rose to 7.9 percent from 7.8 percent as more people entered the labor force.
Canadian employment rose by 1,800 following September’s 52,100 gain, Statistics Canada said today in Ottawa. Gains in public-sector work were curbed by a decline in agriculture. Economists surveyed by Bloomberg News projected job creation of 10,000, according to median of 23 forecasts.
The nation’s unemployment rate remained at 7.4 percent.
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