Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Canadian dollars, also known as "loonies" are shown with U.S dollars in this file photo. (Ryan Remiorz/THE CANADIAN PRESS)
Canadian dollars, also known as "loonies" are shown with U.S dollars in this file photo. (Ryan Remiorz/THE CANADIAN PRESS)

Loonie advances after strong jobs numbers Add to ...

T he Canadian dollar closed higher Friday amid data showing much stronger than expected job creation in December.

The loonie was up 0.1 of a cent at $1.0131 (U.S.) as Statistics Canada reported the economy created 40,000 jobs last month. Economists had believed that only about 5,000 positions would be turned out in December after a surge of 59,000 new jobs in November.

More Related to this Story

At the same time, the unemployment rate edged down to a four-year low of 7.1 per cent from 7.2 per cent.

There was also positive news from Canada’s biggest trading partner as the U.S. Labour Department reported that the economy created 155,000 jobs in December.

That was in line with heightened expectations after payroll firm ADP reported Thursday that the U.S. private sector cranked out 215,000 jobs last month.

The loonie had been lower earlier in the morning as the U.S. currency strengthened following indications that the Federal Reserve could wind up its bond-buying stimulus program by the end of the year.

Minutes from the Fed’s latest policy meeting last month showed that policy makers expressed broad support for the central bank’s plan to buy bonds to support the U.S. economy. But there was a split over how long to continue the purchases.

Some of its voting members thought the program should continue throughout the year, while others felt it should be slowed or stopped before the end of 2013 amid concerns that the continued bond purchases, known as quantitative easing, would destabilize the economy.

Lower commodities had pressured the loonie with the February bullion contract on the New York Mercantile Exchange falling $25.70 to $1,648.90 an ounce.

The Federal Reserve’s quantitative easing program has been supportive of gold prices. Bullion has looked attractive as an inflation hedge since the QE program has involved printing more dollars to buy up bonds.

March copper fell 2 cents to $3.69 a pound while February crude on the Nymex gained 17 cents to $93.09 a barrel.

In the know

Most popular videos »

Highlights

More from The Globe and Mail

Most popular