Week in FX Americas – The Loonie Bears Had Their Wings Clipped

The bears did get a bit of a reprieve after Friday’s tepid US employment results, but at parity, there is ‘no harm no foul.’ The US jobs report now deflates fears of the Fed pulling back stimulus, supporting both equities and bonds and hurting the greenback somewhat.

It seems that corporate dollar offers have scaled back to 1.0020-50, with decent amounts now reported on top. On the downside, investors should expect bids to begin to appear in ‘dribs and drabs’ starting at 0.9960 and appearing all the way down to 0.97.

Stats Canada get to revise Canadian employment numbers once a year and on Friday they reported that Canada’s job creation was lower than previously thought at the end of last year, although the jobless rate remains at the lowest level in four-years (+7.1%).

The economy only added +31.2k net new jobs in December 2012, less than the +39.8k reported.

No matter what Canada keeps reporting, the pace of job creation remains a surprise to many analysts. Job creation was stronger in the second half of last year. This is certainly a strong reason to be more of a loonie lover than a hater!

• Canada Dollar Breaks Parity
• Gold Pares Back Biggest Rally In 3-weeks
• Canada’s November GDP Print Beats Expectations
• US Jobless Claims Rise +38k On The Week
• New Fed Roster Likely Won’t Alter Policy
• Fed to Continue Stimulus Amid Signs of Pause in Growth
• Canadian Dollar Trades Near Six Month Low as U.S. Economy Contracts
• US Economy Comes to Standstill
• US Economy Sinks On Defense Spending
• Moody’s says US Triple A rating still not safe
• Canadian dollar Posts Large Gains Against U.S. Dollar
• Fed’s Bond Buying to Reach $1.14 Trillion in 2014

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