The Canadian dollar rose against the majority of its 16 most-traded peers before data tomorrow forecast to show the nation snapped two months of jobs losses in a sign the economy may be emerging from a mid-year slowdown.
The currency fell against the U.S. dollar as jobless claims in that country dropped and its service industry grew at the fastest pace since 2008. Crude oil, Canada’s largest export, climbed after American legislators took the first step to approving a military strike on Syria that could disrupt Middle Eastern fuel shipments. Tomorrow’s jobs report may reverse a string of weaker-than-forecast data, from construction activity to retail sales, that contributed to the largest monthly economic contraction since the 2009 recession in June.
“There’s been a lot of gloom hanging over Canada in recent months, so given that’s the way the market is positioned, when you do get forecasts for better data, then clearly that has a brightening effect,” Jane Foley, a senior currency strategist at Rabobank International Inc., said by phone from London. If there’s strong jobs growth tomorrow, “the market will start to evaluate if the economy is going to improve from here.”
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