The Canadian dollar gained against its U.S. counterpart for a third day after stronger-than- forecast employment gains sparked speculation the economic recovery is gaining traction.
The Canadian currency rose against the majority of its most traded peers as employment data from both Canada and the U.S., its largest trading partner, exceeded estimates last week. The jobs data followed central-bank Governor Mark Carney’s softened language about tighter policy, saying inflation will “remain low in the near term.” Canadian industrial companies’ use of their production capacity held at almost the highest rate since 2007 last quarter, a report may show this week.
“You can chalk some of the gain up to to Canada’s better- than-expected jobs report,” Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co. (WU), said by phone. “It is seen giving a shot in the arm to the loonie.”
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