TORONTO - The Canadian dollar was higher Thursday ahead of an expected move by the European Central Bank to help alleviate the high borrowing costs of the most vulnerable members of the eurozone, including Spain and Italy. The loonie rose 0.4 of a cent to 101.32 cents US. ECB president Mario Draghi was expected to announce some sort of bond-buying program but it would likely come with strings attached. To be eligible for the central bank’s help, for example, countries would likely have to formally apply for assistance from the eurozone’s rescue facility and accept conditions on their budget policies, which many governments would be reluctant to do. Prior to Draghi's announcement later in the morning, the ECB said that is was leaving its key interest rate unchanged at 0.75 per cent. Expectations for ECB action have been high since Draghi said in July that the bank would do whatever it takes to save the euro currency. Markets also looked ahead to Friday’s release of the August non-farm payrolls report to see if a weak report would persuade the U.S. Federal Reserve to embark on another round of stimulus. Expectations are modest with economists forecasting the American economy created only about 127,000 jobs last month. The Fed could make stimulus intentions clearer when it holds its next interest rate announcement Sept. 14. Canadian employment data will also be released Friday. Statistics Canada is expected to announce the economy cranked out about 11,000 jobs. Oil prices were also higher amid hopes that a fix for the eurozone debt crisis would help get parts of Europe out of recession and improve demand prospects. The October crude contract on the New York Mercantile Exchange gained 92 cents to US$96.28 a barrel. December copper declined one cent to US$3.52 a pound, losing some of Wednesday's six-cent gain. But December bullion gained $19.70 to US$1,713.70 an ounce. Read it on Global News: Global Saskatoon | Canadian dollar advances ahead of expected ECB move to curb borrowing costs

Source