BLBG: Canada's Dollar Gains Versus Greenback on Signs of Stronger U.S. Economy
Canada’s dollar rose versus the greenback after a report showed U.S. companies added almost three times as many jobs as forecast, prompting speculation the economy of Canada’s largest trading partner is gaining strength.
Canada’s currency rose against all of its 16 most-traded counterparts. It strengthened against the greenback for the 9th day out of the past 10 as U.S. companies added 297,000 jobs, exceeding the highest projection in a Bloomberg News survey, according to figures from ADP Employer Services. The loonie, as the currency is nicknamed, fell earlier by as much as 0.4 percent against the greenback as crude oil and copper prices declined.
“Huge ADP number out of the U.S.” was the reason the Canadian dollar reversed losses, Firas Askari, head currency trader in Toronto at Bank of Montreal’s BMO Capital unit, said via e-mail. “Big U.S. numbers are great for Canada. We’re still more closely correlated to the U.S.“hgh1
The Canadian currency appreciated as much as 0.3 percent versus the U.S. dollar before trading at 99.62 cents per U.S. dollar, up 0.2 perrcent at 9:11 a.m. in Toronto, compared with 99.83 cents yesterday. The loonie touched par with the greenback on Dec. 28 for the first time in almost seven weeks. One Canadian dollar buys $1.0038.
“If U.S. employment numbers start picking up and this is a new trend, then the Canadian dollar should do very well, especially on crosses like euro-Canada,” Askari said.
The ADP report showed the biggest jump in payrolls since records began in 2001. The median estimate in the Bloomberg survey called for a 100,000 gain last month. Canada ships about two-thirds of its exports to the U.S.
Crude for February delivery slid as much as $1.28 to $88.10 a barrel, the lowest since Dec. 20, in electronic trading on the New York Mercantile Exchange. Copper futures for delivery in March declined as much as 1.8 percent to $4.2905 a pound on the Comex in New York.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
