The Canadian dollar strengthened to the highest level in more than two weeks as the nation added jobs at triple the pace forecast last month, indicating the recovery remains resilient as U.S. employment growth falters.
The currency rose against the majority of its most-traded peers as Statistics Canada said the economy added 59,200 positions in August, compared to the 20,000 forecast in a Bloomberg survey of 22 economists. The unemployment rate fell to 7.1 percent from 7.2 percent. The U.S., the nation’s biggest trading partner, added 169,000 jobs in August, compared to the 180,000 forecast in a separate Bloomberg survey.
“For a while it’s been quite clear the Canadian labor market has recovered to its pre-recessionary position and this data just suggests, that while the Canadian economy has had its issues this year, it still is in better shape than the U.S.,” said Jane Foley, senior currency strategist at Rabobank International, by phone from London. “It’s a combination of disappointing U.S. data and a better Canada number.”
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