Investing.com - Financial Markets Worldwide

Sudden Increases In Canadian And U.S. Employment

ByThe National Bank of Canada
Published 03/12/2013, 07:13 AM
Updated 05/14/2017, 06:45 AM

Last week was very newsworthy, given all the economic data released and the market events. On Wednesday, Mark Carney, the outgoing Governor of the Bank of Canada, softened his tone slightly, saying that rates will not rise for some time. We should recall that, less than a year ago, a rate increase appeared imminent. On Friday, everyone was taken by surprise by sudden increases in Canadian and U.S. employment statistics: 50,700 jobs were created in Canada (vs. 8,000 forecast) and 236,000 jobs were created in the U.S. (vs. 165,000 forecast). The Loonie rose on the news, climbing 60 basis points against the greenback, but we believe that this drop in the USD/CAD will be temporary. By mid-afternoon on Friday, the Fitch ratings agency had downgraded Italy’s credit rating, citing election results - or rather “inconclusive election results”- for the decision.

Forecast Previous
The Loonie

“The best way to predict the future is to create it.”Peter Drucker

February proved to be the best month for the U.S. dollar (USD) in close to a year, as it appreciated 3.5% relative to a basket of currencies of its trading partners. The greenback rose due both to the inability of U.S. elected officials to reach an agreement to avoid automatic spending cuts and the expected political deadlock in Italy given the results of recent elections. As a result of worsening economic data in Canada and a change of tone at the Bank of Canada, the loonie (CAD) was unable to hold its own against a rising USD. Speculators also weakened the Canadian dollar by shorting it. All of this occurred in a context of greater volatility for the CAD. What does the future hold? What course is the loonie likely to take over the next few quarters?

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.