The Canadian dollar raced higher versus the US currency on Friday and closed above par for the sixth straight session as strong domestic jobs data all but eliminated the chance for a Bank of Canada interest rate cut.
Bond prices turned sharply lower after the data and could not make up any ground as a Bank of Canada survey showed Canadian companies reported more labour shortages. The Canadian dollar closed at 98.18 Canadian cents to the US dollar, or US $1.018, up from Thursday's session close of 99.74 Canadian cents to the US dollar, or US $1.0026. During the North American session the Canadian currency rose to 97.86 Canadian cents to the US dollar, or US $1.022, which marked the currency's highest level since November 1976.
Not only did data from Statistics Canada show employers hired three times more workers than predicted in September, but it also showed the unemployment rate in Canada unexpectedly fell to a 33-year low of 5.9 percent in September. "It was a very strong number for Canada and continues the strong run of economic data that we're currently seeing.
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