Skip to main content

The Canadian dollar weakened against its U.S. counterpart on Friday and was on track to fall nearly 1 per cent for the week after data showed the economy unexpectedly shed jobs in August.

Canada’s economy lost 51,600 jobs in August, the biggest decline since January, as losses in part-time work overtook gains in full-time employment, data from Statistics Canada showed. Analysts surveyed by Reuters had expected the economy to add 5,000 jobs.

“I think there was some disappointment on the headline release,” said Karl Schamotta, director of global markets strategy at Cambridge Global Payments. “The replacement of part-time positions with full-time to some extent helped to nullify the overall impact.”

Story continues below advertisement

Perceived chances of a Bank of Canada interest rate hike in October dipped to 57 per cent from 60 per cent before the data, the overnight index swaps market indicated.

On Thursday, Bank of Canada Senior Deputy Governor Carolyn Wilkins boosted rate hike expectations when she said in a speech that the central bank had discussed dropping its gradual approach to hiking rates.

In separate data, the Ivey Purchasing Managers Index (PMI) edged up to 61.9 from 61.8 in July, indicating an acceleration in economic activity.

At 3:02 p.m. (1902 GMT), the Canadian dollar was trading 0.2 per cent lower at $1.3170 to the greenback, or 75.93 U.S. cents.

The currency traded in a range of $1.3111 to $1.3190. For the week, the loonie was on track to decline 0.9 per cent.

Losses for the Canadian dollar on Friday came as stocks fell after U.S. President Donald Trump said fresh tariffs are ready to go on $267 billion worth of Chinese imports.

Canada runs a current account deficit and exports many commodities, so its economy could be hurt if an escalation in the trade dispute between the United States and China reduced the global flow of trade or capital.

Story continues below advertisement

The price of oil , one of Canada’s major exports, settled nearly unchanged.

The U.S. dollar rose against a basket of currencies after strong U.S. jobs data cemented expectations for the Federal Reserve to increase interest rates further.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The 10-year fell 47 Canadian cents to yield 2.287 per cent.

A deal to revamp the North American Free Trade Agreement remained elusive but differences between Canada and the United States appeared to have narrowed.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter