Week in FX Americas – The Loonie Bears Had Their Wings Clipped
The loonie was supposed to weaken this week, only because everyone said so. However, the currency took off in one direction and that was higher.
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%).