Canadian dollar and business outlook

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The Canadian dollar was weaker Friday morning, as employment data out of the United States beat expectations.

At 8:39 a.m. CST the Canadian dollar was trading at US$0.7429 or US$1=C$1.3461, which compares with Thursday’s close of US$0.7460 or US$1=C$1.3404.

U.S. nonfarm payrolls increased by 353,000 jobs in January, according to a report from the Labor Department, with December data revised higher to 333,000 jobs. The employment growth was roughly double what economists had been predicting and was seen confirming ideas that the U.S. Federal Reserve would be unlikely to cut interest rates anytime soon.

Crude oil pressured lower by reports of potential ceasefire talks between Israel and Hamas, with West Texas Intermediate crude oil down by 1.49 per cent at US$72.72 per barrel.

The TSX was weaker, losing 162.80 points at 8:39 CST to trade at 20,956.41 points.