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Canadian Dollar Stops Short of 92 Cents ahead of Revised Jobs Report

H.S. Borji
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Canadian Dollar Stops Short of 92 Cents ahead of Revised Jobs Report

The Canadian dollar approached 92 US cents Thursday, but failed to generate additional momentum ahead of a revised jobs report from the government’s statistics agency on Friday.

The loonie, as the Canadian currency is called, rose to an intraday high of 0.9187 US in the morning trade. The loonie consolidated at 0.9171 US, advancing 0.1 percent.

The USDCAD pair declined 0.09 percent to 1.0904. Initial support is likely found at 1.089 and resistance at 1.0937.

The Canadian dollar was stronger across the board on Thursday.

The loonie advanced 0.13 percent against the Japanese yen, sending the CADJPY to 93.96. The pair faces initial support at 93.62 and resistance at 93.98.

The EURCAD declined 0.04 percent to 1.4581, rebounding from an intraday low of 1.4563. Initial support is likely found at 1.4556 and resistance at 1.4632.

The loonie edged higher against the pound, as the GBPCAD climbed 0.09 percent to 1.8197. The pair faces initial support at 1.8151 and resistance at 1.8337.

Investors are on the sidelines after an unusual announcement from Statistics Canada prompted speculation about the country’s labour market data. StatsCan on Tuesday effectively discarded last week’s employment report, saying it found an “error” in the data that would result in a new report on Friday.

“An error has been detected in the processing of the August 8 Labour Force Survey release,” read an official bulletin on the StatsCan website.

“This error impacts only the July 2014 estimates. The source of the error has been identified and corrected estimates will be released on Friday, August 15, 2014.”

The nature of the announcement suggests tomorrow’s report could show a significant revision over last week’s estimate, which said Canada’s economy added just 200 jobs in July. Economists forecast a gain of around 20,000.

The unemployment rate dipped from 7.1 percent to 7 percent as workforce participation fell from 66.1 percent to 65.9 percent, a 13-year low.

The agency’s labour market data have come under scrutiny several times this year. The auditor general’s 2014 spring report questioned the reliability of StatsCan data, especially for smaller communities. The auditor general also concluded that StatsCan’s survey is of little benefit to job-seekers since it fails to outline the precise location of job openings.

A separate study from the Bank of Canada released in May questioned the usefulness of the unemployment rate in gauging the labour market recovery. The report concluded that job creation during the recession was less impressive than the decline in unemployment would suggest.

In economic data, the value of new Canadian homes increased for the seventh consecutive month in June, led by the combined metropolitan region of Toronto and Oshawa.

New house prices increased 0.2 percent in June, which translated into an annualized gain of 1.5 percent, official data revealed today.

The Toronto and Oshawa region saw new house prices rise 0.3 percent.

In total, eight of the 21 metropolitan regions covered saw new house prices rise in June.

Looking ahead, StatsCan will release June manufacturing shipments on Friday. Shipments increased 1.6 percent in May.

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