Canadian Dollar Advances on Bets Jobs Growth Rebounded in AprilAri Altstedter
The Canadian dollar rose against the majority of its most-traded peer before a report forecast to show job creation rebounded in April.
The currency touched its lowest level in a week versus the U.S. dollar as the greenback rose against all its major peers after the yen fell past 100 to the American dollar yesterday for the first time since 2009. Canada added 15,000 jobs in April after losing 54,500 the previous month, according to a Bloomberg survey of 27 economists. A separate survey predicted the unemployment rate to remain at 7.2 percent.
“I don’t expect the Canadian dollar to lose a lot more ground from here and it may be the market is seeing these levels as an opportunity to buy,” said Jane Foley, senior currency strategist at Rabobank International, by phone from London. “Given that we’ve had this selloff, you could say the market is now positioned for a disappointing number and if we get anything slightly above the market median then we can see the Canadian dollar gaining back some ground.”
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, fell 0.1 percent to C$1.0076 per U.S. dollar at 7:40 a.m. in Toronto, after touching C$1.0100 per U.S. dollar, its lowest since May 3. One loonie buys 99.24 U.S. cents.