The Canadian dollar rose to its highest level in a week on bets a report on July jobs growth will add to signs the country’s economy is on track to beat Bank of Canada growth projections for the year.
The currency rose against the majority of its most-traded peers before a report forecast to show Canada’s economy created 10,000 jobs in July after losing 400 the month before, according to the median estimate of a Bloomberg survey of 23 economists. The Bank of Canada raised its estimate for growth in gross domestic product to 1.8 percent for 2013 at its July 17 policy meeting, up from a prediction of 1.5 percent in April.
“There’s this expectation that we do see some slightly better employment numbers in Canada, which are consistent with growth a little faster than certainly the Bank of Canada is considering,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce, by phone from London. “It’s consistent with an economy that’s generally following the lead of the U.S.”
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, rose 0.3 percent to C$1.0302 per U.S. dollar at 7:59 a.m. in Toronto, touching the highest level since Aug 1. One loonie buys 97.07 U.S. cents.