Canadian forex review: C$ up with positive Cdn jobs data

By Commodity News Service Canada

WINNIPEG, Nov. 7 – The Canadian dollar ended sharply higher relative to the US dollar on Friday, gaining nearly three-quarters of a cent.

Much of the strength was linked to better than expected Canadian jobs data, analysts said. Statistics Canada reported 43,000 new jobs were created in October, while pre-report expectations called for a loss of about 5,000 jobs. The unemployment rate fell to a six-year low of 6.5 per cent.

The Canadian dollar closed at US$0.8824 or US$1=C$1.1333 on Friday, which compares with Thursday’s North American settlement of US$0.8752 or US$1=C$1.1426.

Disappointing US employment data was also bullish for the loonie. The US government reported 215,000 new jobs were created last month, while pre-report expectations called for 235,000 new positions.

Positive economic data out of Germany further underpinned the Canadian currency, as did strength in commodity prices, including crude oil.

Canadian bonds closed higher on Friday, despite the better than expected Canadian jobs figures. The market was following the US Treasury market after the release of lackluster US employment data, traders said.

The two-year bond yielded 1.021% late Friday, from 1.028% late Thursday. The 10-year bond yielded 2.031%, from 2.086%. Bond yields fall as their prices rise.