Canada’s dollar weakened to a 5 1/2-year low after employment unexpectedly shrank last month as U.S. payrolls grew more than forecast, adding to speculation the Canadian economy is falling behind that of its biggest trade partner.
The currency dropped for a seventh week, the longest losing streak since November 2000, after data showed Canada lost jobs for a second month. It fell versus most major peers. Bank of Canada Governor Stephen Poloz said in December the slump in crude oil, the nation’s biggest export, will damp economic growth in this year, while the Federal Reserve indicated the U.S. was on course to an interest-rate increase in 2015.
“The story for Canada is an ongoing divergence between the Canadian economy and the U.S. economy,” said Camilla Sutton, chief foreign-exchange strategist at Bank of Nova Scotia, by phone from Toronto. “The jobs report just really highlights that divergence with a stronger U.S. economy and underperformance in Canada.”
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