Market News
December 10, 2012 @ 2:36 pm

Canadian dollar holds gains after Friday’s strong jobs numbers


The Canadian dollar held onto gains on Monday after strengthening against the US dollar on Friday in reaction to better-than-expected Canadian employment data.

The labour market in Canada showed signs of improvement in November after a sluggish October, with the economy creating the most jobs in eight months.

According to Statistics Canada, 59,300 net new jobs were added in the month, mostly full-time positions and in the private sector.

The unemployment rate fell to 7.2 percent, the lowest level since March, from 7.4 percent. Forecasts were for only 10,000 new jobs in November and a steady 7.4 percent jobless rate.

The bounce back in the jobs markets offered hope of stronger economic growth in the fourth quarter, just as the Canadian economy was practically grinding to a halt.

The Bank of Canada has held its key rate at 1 percent for over two years but has been signaling plans to hike rates since April.

The Canadian dollar jumped to a one-month high after the data  C$0.9878 versus its U.S. counterpart, or $1.0124 , compared with C$0.9925, or $1.0076, immediately before the releases. It was Canadian dollar’s strongest level since November 7. The loonie mostly consolidated those gains on Monday. Some lower-than-expected Canadian housing starts numbers on Monday had little effect on the currency.

Related Posts Plugin for WordPress, Blogger...
,

No comments yet.

Leave a Reply

You must be logged in to post a comment.