The Canadian dollar weakened against its U.S. counterpart before reports that are forecast to show the countries’ unemployment rates were little changed.
The loonie, as the currency is nicknamed, depreciated against the U.S. dollar before a government report that may show that June’s payroll count probably capped the weakest quarter for the country since 2010, economists predict. Canada is projected to have gained 5,000 jobs in June, compared with an increase of 7,700 in May, according to a Bloomberg survey of economists.
“Little bit of a risk-off tone this morning, but very modest at this point given the potential turnaround from the employment numbers,” Matthew Perrier, Toronto-based director of foreign exchange at Bank of Montreal, said in a telephone interview.
Canada’s currency dropped 0.1 percent to C$1.0152 per U.S. dollar at 7:53 a.m. in Toronto. One Canadian dollar buys 98.50 U.S cents. The loonie was little changed against the euro at C$1.2562 per euro, after reaching a two-year high against the 17-nation currency yesterday.