The Canadian dollar weakened against all the other Group of 10 currencies \u2060on \u200bFriday as domestic data showed a surprise decline in employment, spurring investors to reduce bets on Bank of Canada interest rate hikes this year.<\/p>\n
The loonie was trading 0.2% lower at 1.3690 to the U.S. dollar, \u200bor 72.99 U.S. cents, after touching its \u200cweakest intraday level since April 29 at 1.3710. It was the only G10 currency to lose ground against the greenback.<\/p>\n
For the week, the loonie was down 0.7%, after four straight weekly gains.<\/p>\n
Canada\u2019s economy lost 17,700 jobs in April and \u200cthe unemployment rate \u200brose to a \u200csix-month high of 6.9%, indicating continued weakness in a labour market that \u200bhas struggled in the face trade uncertainty. Analysts \u2060had predicted a jobs gain of 15,000.<\/p>\n
\u201cThe Canadian dollar is \u2060ratcheting lower as traders pull back on monetary tightening expectations previously incorporated in rate curves, \u200band differentials tilt in the greenback\u2019s favour,\u201d Karl Schamotta, chief market strategist at Corpay, said in a note.<\/p>\n
\u201cWe think signs of stability will emerge in the coming months as trade uncertainties are reduced and downward momentum in housing markets begins to slow, \u2060but today\u2019s data points to a long and difficult road ahead for the Canadian economy.\u201d<\/p>\n
Investors were pricing in 38 basis points of tightening from the BoC by December, down from 44 basis points before the data.<\/p>\n
Last week, the central bank said that if oil \u2060prices stayed high and began pushing up inflation, \u200bit might have to respond with consecutive rate hikes.<\/p>\n
U.S. employment data, in \u2060contrast, pointed to labor market resilience which reinforced expectations the Federal Reserve would leave interest rates unchanged \u200cfor some time. The price of oil rose 0.9% to $95.64 a barrel, a \u200bday after renewed fighting near the Strait of Hormuz raised new questions about the ceasefire between the United States and Iran. Oil is one of Canada\u2019s major exports.<\/p>\n
Canadian bond yields fell across \u200ba steeper curve, with the 10-year down 4.1 basis points at 3.483%. <\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian dollar weakened against all the other Group of 10 currencies \u2060on \u200bFriday as domestic data showed…\n","protected":false},"author":2,"featured_media":37321,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[164,224,238,214,212,239,17,211,230,231,227,213,210,235,171,234,143,222,249,215,216,229,225,226,219,240,220,244,245,247,242,246,94,243,217,142,233,113,232,241,223,236,237,228,221,218,248],"class_list":{"0":"post-37320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-canada","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-canada","15":"tag-canada-news","16":"tag-canada-sports","17":"tag-canada-sports-news","18":"tag-canada-trafficcanada-weather","19":"tag-canadian-breaking-news","20":"tag-canadian-news","21":"tag-economy","22":"tag-education","23":"tag-environment","24":"tag-federal-government","25":"tag-foreign-news","26":"tag-globe-and-mail","27":"tag-globe-and-mail-breaking-news","28":"tag-globe-and-mail-canada-news","29":"tag-government","30":"tag-life-news","31":"tag-lifestyle","32":"tag-local-news","33":"tag-manitoba","34":"tag-national-news","35":"tag-new-brunswick","36":"tag-newfoundland-and-labrador","37":"tag-northwest-territories","38":"tag-nova-scotia","39":"tag-nunavut","40":"tag-ontario","41":"tag-pei","42":"tag-photos","43":"tag-political-news","44":"tag-political-opinion","45":"tag-politics","46":"tag-politics-news","47":"tag-quebec","48":"tag-sports-news","49":"tag-technology","50":"tag-travel","51":"tag-trudeau","52":"tag-us-news","53":"tag-world-news","54":"tag-yukon"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/37320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=37320"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/37320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/37321"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=37320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=37320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=37320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}