Canadian Dollar at Highest in Two Weeks on Bets for Jobs Growth
The Canadian dollar strengthened to its highest point in more than two weeks before a jobs report expected to show the Canadian economy added positions for the first time in three months in August.
The currency rose against the majority of its most traded peers ahead of a report expected to show jobs were also created in the U.S., Canada’s largest trading partner. Canada created 20,000 jobs in August after shedding 39,400 positions the previous month, according to the median estimate of a Bloomberg survey of 22 economists. The unemployment rate was unchanged in August at 7.2 percent, a separate survey showed.
“The labor market is expected to bounce back fairly sharply after the decline we saw in the previous month,” said David Tulk, chief macro strategist at Toronto-Dominion Bank, by phone from Toronto. “We think it’s going to be a little bit more of a subdued bounce back to be honest, but that is how the market is positioned.”
The loonie, as the Canadian dollar is known for the image of the waterfowl on the C$1 coin, rose 0.6 percent to C$1.0446 per U.S. dollar at 7:50 a.m. in Toronto, the highest since Aug. 21. One loonie buys 95.71 U.S. cents.
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