BLBG: Canada's Dollar Climbs After Economy Unexpectedly Adds Jobs
By Chris Fournier
Nov. 7 (Bloomberg) -- Canada's currency rose after a government report showed the country unexpectedly added jobs during October.
The Canadian dollar is poised to strengthen for a second week, rising 2.2 percent since Oct. 31.
``The employment numbers were respectable,'' said Avery Shenfeld, senior economist with CIBC World Markets in Toronto. ``It seems to have given a bit of a boost to the Canadian dollar, though given the fluctuations we see these days, what we've gained in half an hour we could lose in half an hour.''
The Canadian dollar advanced as much as 1.3 percent to C$1.1824 per U.S. dollar, from C$1.1979 yesterday. It last traded at C$1.1846 at 8:51 a.m. in Toronto. One Canadian dollar buys 84.43 U.S. cents.
The economy added 9,500 jobs last month after a gain of 106,900 positions in September, Statistics Canada said in Ottawa. The median forecast of 21 economists surveyed by Bloomberg News was for a decrease of 10,000 in October. Canada's unemployment rate rose to 6.2 percent from 6.1 percent.
The Bank of Canada cut borrowing costs six times in the past 12 months, lowering its overnight rate to 2.25 percent from 4.5 percent. Policy makers next meet Dec. 9.
Canada's currency extended its gains after a U.S. government report showed the world's largest economy lost 240,000 jobs in October and the unemployment rate climbed from 6.1 percent to 6.5 percent.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net