Friday's release of Canadian job figures underscored a situation that was not as difficult as expected. Across our nation, 1,000 jobs were lost in February, whereas economists had expected these figures to come in at more than 5,000. More specifically, these numbers show that the jobs created in Eastern provinces managed to offset the jobs lost in Western provinces, where collapsing crude oil prices are exerting a negative influence. If low prices continue, then it will be interesting to see if this dynamic persists.
In spite of this news, the loonie continued to fall against the greenback, reaching the 1.2800 level. Investors seem to have more confidence in the U.S. economy, which in turn boosted the U.S. Dollar Index (DXY) - which reports on the value of the U.S. dollar against the most-traded currencies- to its highest level since 2003.
Today we are awaiting Industrial Production figures (February) in the U.S. It will be interesting to monitor this economic indicator, as a strong U.S. dollar can influence the manufacturing sector.
Have a great day! Julien Duquette
Range of the day: 1.2690 - 1.2820