Loonie Rallies As Employment Numbers Beat Street

The Canadian dollar strengthened for a second day against its U.S. counterpart after the nation’s employment rose than economists forecast in February on gains by service industries, keeping the jobless rate at a four-year low.

The currency, known as the loonie for the image of the aquatic bird on the C$1 coin, also rose as U.S. payrolls increased more than expected in February. The Canadian currency fell earlier this week after the Bank of Canada softened language about tighter monetary policy and said it won’t raise interest rates anytime soon with inflation slowing more than expected.

“Job numbers look good in North America, and that could lead the way to encourage the market to add risk to their portfolios,” Dean Popplewell, a currency analyst at Oanda Corp, said by phone from Toronto. “Momentum should favor growth currencies in Canada and Mexico.”

The loonie rose 0.3 percent to C$1.0263 per U.S. dollar at 8:48 a.m. in Toronto. It touched C$1.0342 on March 1, matching the weakest since June 28. One Canadian dollar buys 97.44 U.S. cents.

Mexico’s peso gained 0.4 percent to 12.7100 to the dollar, one of just four currencies to advance versus the greenback.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell