The Canadian dollar rallied on Friday after the release of official
figures that showed the Canadian economy added over 30,000 jobs in
September and the unemployment rate surprised analysts by falling.
The Canadian dollar rallied on Friday after the release of official
figures that showed the Canadian economy added over 30,000 jobs in
September and the unemployment rate surprised analysts by falling.
Photograph by: National Post, National Post
LONDON -- The Canadian dollar rallied on Friday after the release of
official figures that showed the Canadian economy added over 30,000
jobs in September and the unemployment rate surprised analysts by
falling.
The data pushed the U.S. dollar to a fresh one-year low of C$1.0455
from around C$1.0500 just beforehand.
The creation of 30,600 jobs was way above the 5,000 analysts had
expected, and the unemployment fell to 8.4% when the consensus view was
for a tick up of a tenth of a percent to 8.8%.
The U.S. dollar's fall smashed a large option structure at C$1.0480
expiring in a couple of weeks, which some thought could have provided
support near C$1.05.
Crank up the presses enough, and churn out enough Canadian loonies and
you soon have a weaker, more competitive dollar.
That's the same old school approach. No need to get any fancier than
that.
It has happened because Canada's monetary policies have not kept pace
with the other major world nations, including the USA. Too
conservative. What Canada needs to do is to loosen its money supply
consistent with the other nations, to fall into place among them, not
to stand out like a sore conservative thumb.
Cheers.
Robert Morpheal