Loonie down half a cent
Jul 5, 2013 / 6:22 am
The Canadian dollar dropped more than half a cent early Friday as stronger U.S. jobs numbers sent the greenback soaring, while numbers from Canada beat expectations, but not by much.
The loonie moved down 0.51 of a cent to 94.54 cents US before stock markets opened.
Statistics Canada said the official unemployment rate remained unchanged at 7.1 per cent last month as employers pulled back after a wild month of hiring in May.
The agency reported the economy shed a mere 400 jobs in June, a statistically insignificant number. It was also better than the 12,500 jobs economists had expected would be lost in the hangover from the hiring binge seen in May, when 95,000 new jobs were added.
Results from the U.S. left traders more encouraged.
The U.S. Labor Department said U.S. employers added 195,000 jobs in June and hiring was more robust in the two previous months than earlier estimated. Hiring for April and May was revised higher, which suggests job growth is accelerating.
BMO Capital Markets chief economist Doug Porter said in a note that Canada's unemployment rate finished the first half of the year where it started.
"Underlying job growth has clearly geared down, but has not collapsed and we expect it to remain mild in the second half, pointing to some modest improvement in the jobless rate," Porter said in a note.
"The combination of a wishy-washy Canadian employment report, and a solid U.S. report is a mild negative for the Canadian dollar, but we would stress good news for the U.S. economy is ultimately good news for Canada as well."
In commodities, the August crude contract on the New York Mercantile Exchange was ahead 87 cents at US$102.11 a barrel.
August gold bullion dropped $28.40 to US$1,223.50 an ounce on the Nymex.
Read more Business News
|QHR Technologies Inc||1.11||+0.05|
|Anavex Life Sciences||0.34||-0.055|
|Copper Mountain Mining||1.55||+0.08|
Opportunities to Be Aware of This Year As the 2013 year is coming to an end, individuals should be mindful of year-end tax planning opportunities that will need to be implemented prior to December 31s...
When was the last time you thought about your mortgage? Most people take out a mortgage with their bank for five years and then forget about it. When you took out that mortgage did anyone discuss ot...
Recently, people have been asking me about my recent Stand Up Paddle adventure around the entire Okanagan Lake. Here is an excerpt from an article I wrote with a link at the end to the complete artic...
- US stocks waver as investors try to guess when the Fed will pull back on stimulus; Sears drops
- Study compares tech habits of Canadian boomers versus Gen Y and Z consumers
- US service sector expands at weaker pace in November as sales, orders and hiring slow.
- Survey: CEOs more optimistic about US economy, hiring and sales in the next 6 months
- US new-home sales jump in October to seasonally adjusted annual rate of 444,000
- Board changes expected at Barrick should boost investor sentiment
- Survey: US businesses add 215,000 jobs in November, the most in 12 months
- Descartes reports record Q3 revenue, net income falls, following acquisition
- Three years in the making, Canada's anti-spam law coming into force next year
- Rogers snaps up naming rights to future downtown home of Edmonton Oilers
- Sun Media cutting 200 jobs across the company including about 50 from editorial
- Conservatives and NDP battle in war of words over competing energy policies