Closing in on thirty year highs, the Canadian dollar rose on better-than-expected employment data. With 34,800 jobs added this June, hawkish sentiment increased. Employment figures were the last significant economic indicators released before the Bank of Canada?s policy meeting on July 10th.
The Canadian unemployment rate emerged unchanged at 6.1%. However, the 34,800 jobs added in the Canadian economy increased speculation of a rate hike from the Bank of Canada.
http://www.cbc.ca/money/story/2007/07/06/unemployment.html
[I]Source: CBC[/I]
Surprise June employment data caused a boost in the Canadian dollar and Canadian bond yields, with USDCAD down to $1.0497 early Friday morning.
http://www.canada.com/nationalpost/financialpost/story.html?id=957ba7cc-4480-4c0a-aa8b-cea406c27d0c&k=21219
[I]Source: Financial Post[/I]
Canadian oil and natural-gas producer Cygam Energy Inc. won a license to explore in Tunisia. Rigo Oil Co., Cygam?s Italian division, plans to spend over 8 million dollars on drilling and exploration.
http://www.bloomberg.com/apps/news?pid=20601082&sid=adu7nQ5xvmCA&refer=canada
[I]Source: Bloomberg[/I]
[B]Currency Markets: USDCAD[/B]
Closing in on thirty year highs, the Canadian dollar rose on better-than-expected employment data. With 34,800 jobs added this June, hawkish sentiment increased. Employment figures were the last significant economic indicators released before the Bank of Canada?s policy meeting on July 10th. Given the strong figures, little is stopping the Bank of Canada from tightening. The Canadian dollar was most recently quoted at 1.0470.
[B]Equity Markets: S&P/TSX Index[/B]
Canada?s S&P/TSX index dropped on the release of positive employment data, suggesting the Bank of Canada may raise rates to cool the economy. Shares of Royal Bank were down 28 cents and Research In Motion fell $2.24, dragging the Canadian benchmark equity index down with them. The S&P/TSX was last quoted down 7.54 at 14,071.87.
[B]Fixed-Income Markets: Canadian 10-year Government Bond[/B]
Bonds fell today on the release of strong employment data, signaling an imminent rate hike by the Bank of Canada. Canadian 10-year government bond yields perked up, which could lower the demand for loans. Interest rate futures continue to price in two rate hikes by year end. The Canadian 10-yr government bond was most recently quoted at 94.875.
