Canadian dollar ends weaker as world equities lose some shine

Thu May 9, 2013 4:53pm EDT
 
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By Andrea Hopkins

TORONTO (Reuters) - The Canadian dollar ended weaker against its U.S. counterpart on Thursday after briefly touching its strongest level in more than two months, with traders looking to Friday's key domestic jobs report to set direction for the currency.

The Canadian currency took its direction from weaker prices for some commodities and a pullback in global stock markets, which slipped from recent record levels. <MKTS/GLOB>

"We don't have much in the way of domestic drivers today. The equity markets began to lose a bit of their steam, that was the primary factor," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital.

"We've come a long way really, and we have a pretty important release tomorrow."

The Canadian dollar ended the North American session at C$1.0075, or 99.26 U.S. cents, nearly half a cent weaker than Wednesday's close of C$1.0033, or 99.67 U.S. cents.

The currency earlier in the session hit C$1.0014 to the U.S. dollar, its strongest level in nearly three months. The Canadian dollar had gained some 2-1/2 cents on the U.S. dollar since late April before the afternoon retrenchment.

Over the longer term, the Canadian dollar is expected to weaken against the greenback in the year ahead, according to a Reuters poll published on Wednesday. Forecasters cited concern about the economy's slow rate of growth compared with that of the United States. <CAD/POLL>

Chandler said focus is now on the Canadian employment report due out on Friday, which is expected to show the economy added 15,000 jobs in April, according to a Reuters survey of analysts, after a steep decline notched in March.   Continued...

 
The Canadian 20 dollar bill made of polymer is displayed at the Bank of Canada in Ottawa May 2, 2012. REUTERS/Chris Wattie