Canadian Employment Figures boost Loonie

October 9, 2009 Share Print 0

The talk surrounding the CAD reaching parity versus the USD is beggining to gather steam even as the Bank of Canada has warned that it might hamper Canada’s recovery. Canada’s economy depends on its exports primarly to the US, and a rising currency would shrink the gap between exports and imports as is the case currently in Germany.

The Canadian dollar powered to its highest level in more than a year Friday, hitting 95.93 cents (U.S.) in morning trading Ã¢â‚¬â€œ and rekindling speculation on when it might reach parity with the U.S. dollar.

The loonie jumped almost a cent on news that the Canadian economy created 31,000 new jobs in September, lowering the unemployment rate to 8.3 per cent from 8.4 per cent. It wavered only slightly a few hours later when Statistics Canada reported that Canada’s trade deficit increased to a record $2-billion in September.

Globe and Mail

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.