September 10, 2012
Chalk up another one for the Loonie! Thanks to contrasting jobs figures reports, the Canadian dollar drilled the greenback, as USD/CAD sank 45 pips lower to finish at .9783.
An additional 34,300 jobs were added to the Canadian economy last month, which was more than three times greater than the projected 9,900 increase. Meanwhile, the unemployment rate remained steady at 7.3%.
Combining this with the news that Uncle Sam posted jobs gains of just 96,000 – way below the 123,000 forecast – it’s no surprise that the Canadian dollar ruled the day!
Meanwhile, the Ivey PMI came in at 62.5, a slight decrease from the previous month’s 62.8, but still above the anticipated reading of 61.2.
The Canadian dollar’s rally could have even been more impressive had it not been for the dismal building permits report, which indicated that permits granted dropped by 2.3%. It was projected that permits would decrease by just 1.5%.
Nothing on tap today, but you’d best be served keeping a close eye on risk sentiment, as this will most likely be the major driving theme in the markets over the next couple of days.
"The only cable I watch is the pound baby."