Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, September 1, 2016 (CNS Canada) The Canadian dollar traded both sides of unchanged against its US counterpart Thursday morning, falling with crude oil and the impending US jobs report.

Oil prices continued to slide after data showed US crude and distillate stockpiles increased more than expected, weighing on the market.

Planned layoffs by US-based employers decreased 20 per cent in August, weighing on the loonie.

US claims for unemployment benefits increased 2,000 to a seasonally adjusted 263,000 for the week ending August 27, according to the US Labor Department. However, the increase was still less than what economists had expected, and it was the 78th consecutive week that claims remained below the 300,000 threshold, suggesting a robust US labour market.

Investors are eager to assess Friday’s US job report, especially after US Federal Reserve chair Janet Yellen said last week that a solid performance in the labour market has strengthened the case for an interest rate hike.

Some Federal officials have hinted that a rate hike could come as early as this month, but analysts have said the Fed will likely wait until December, due to the upcoming US presidential elections in November and inflation rates running below its two per cent goal.

At 9:02 CDT Thursday, the Canadian dollar was at US$0.7623 or US$=C$1.3118, which compares with Wednesday’s North American close of US$0.7624 or US$1=C$1.3116.

The TSX was down 36.32 points, or 0.25 per cent, at 9:02 CDT Thursday morning to sit at 14,634.27.