Canadian Dollar and Business Outlook

Posted

By Commodity News Service Canada


WINNIPEG, MB, Oct. 6, 2017 (CNS Canada) – The Canadian

dollar dipped slightly lower Friday morning, making for a five-

week low against the U.S. dollar due to a drop in exports for

the third straight month.


At 8:40 CDT Friday morning the Canadian dollar was at

US$0.7964 or C$1.2574 which compares with Thursday’s North

American close of US$0.7969 or C$1.25478.


Average Canadian wage growth accelerated at its fastest

pace in over a year for September, according to the Statistics

Canada job report released Friday. Hourly wages for permanent

employees rose 2.2 per cent last month over a year ago. This was

the fastest annual wage growth since June, 2016.


The wage growth points towards the Bank of Canada raising

its interest rates again this year. Before the report was

released policymakers and markets placed the odds of an increase

at 12.2 per cent, it is now 18 per cent. This would be the third

interest rate increase this year.


Employment as well grew in the country with the public

sector adding 26,200 positions. The private sector shed 15,500

jobs and the unemployment rate held steady at 6.2 per cent with

the number of people looking for jobs decreasing.


The price of oil fell Friday after a week which saw

oversupply concerns drive the market lower. Brenchmark Brent

crude futures were down 26 cents to US$56.74 a barrel. U.S. West

Texas Intermediate crude was down 52 cents to US$50.27.


The TSX hit a seven-month high at close Thursday fueled by

a rally in energy and mining stocks with commodity prices

rising. Gains were offset though by a drop in shares of Shopify

for a second straight day.


The Toronto Stock Exchange’s S&P /TSX composite index

closed up 55.30 points (0.35 per cent), at 15,776.30, its

highest close since Feb.23. This morning the TSX opened lower

dropping 0.43 per cent to $15.71 thousand.