Canadian Dollar and Business Outlook

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.


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