Canadian dollar ends flat

11 Jul, 2004

The Canadian dollar was little changed versus the US currency on Friday. The Canadian dollar was at C$1.3159 to the US dollar, or 75.99 US cents, up from C$1.3167 to the US dollar, or 75.95 US cents, at Thursday's close.
Some 24,700 full-time workers were hired in June, while Canada's unemployment rate rose to 7.3 percent from 7.2 percent in May as the number of people actively seeking employment outpaced a big expansion in the public service, Statistics Canada said.
"The headline was pretty much as expected. The details were a little more balanced and potentially slightly weaker, given that the unemployment rate rose a tick. But nothing significant enough to really move things," said George Davis, senior currency strategist at RBC Capital Markets.
"I think we probably would have required a much stronger-than-expected outcome to really generate much more of a market reaction."
Analysts had expected about 25,000 new jobs, while the unemployment rate had been seen staying unchanged from May when it hit the lowest point since July 2001.
With the Bank of Canada likely to soon start tightening, the market has been poring over economic data for hints on when the first rate hike might occur.
Most economists expect the central bank to start raising its overnight rate in September. The US Federal Reserve, meanwhile, boosted its fed funds rate by 25 basis points last week.

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