K Pface. I'll remember that next time I want to care.
By Chris Fournier
Oct. 9 (Bloomberg) -- Canada’s dollar rose to the highest in more than a year and short-term government bonds plunged after a report showed employers added six times more jobs to the country’s workforce last month than economists forecast.
The Canadian currency is heading for a 3.5 percent gain for the week, the biggest five-day advance since July, on speculation the nation could be one of the first economies to emerge from recession. The yield on the two-year Canadian bond climbed, increasing the gap between it and the comparable U.S. Treasury note to the widest since November 2008.
“The bond market is generally weaker in response to the much-better-than-expected Canadian jobs report,” said Sal Guatieri, a senior economist in Toronto at BMO Capital Markets. “It’s possible that theunemployment rate has peaked. People are revising up their estimates for Canadian gross domestic product and employment.”
The Canadian dollar appreciated 0.9 percent to C$1.0429 per U.S. dollar at 3:05 p.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0411, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.89 U.S. cents.
The yield on the two-year Government of Canada security rose 22 basis points, or 0.22 percentage point, to 1.70 percent, 74 basis points more than the two-year U.S. Treasury note’s 0.96 percent yield. The price of the 1.25 percent Canadian note due in December 2011 dropped 45 cents to C$99.06.
Interest-Rate Bets
The jump in job creation sparked speculation that the Bank of Canada may raise interest rates sooner than it previously predicted. The central bank has pledged to leave borrowing costs at a record low 0.25 through June 2010 as long as the inflation outlook doesn’t shift.
The yield on March bankers’ acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99.26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to David Love, a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. The price on the futures moves inversely to expectations for interest rates.
“The market is starting to speculate whether the Bank of Canada will raise interest rates sooner than it conditionally pledged,” BMO’s Guatieri said. “We still think that the bank will not tighten until July next year, but the risks are more evenly balanced now.”
Second Monthly Gain
The unemployment rate dropped to 8.4 percent last month from 8.7 percent in August as employers added a net 30,600 workers for a second straight monthly increase, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted employment would increase by 5,000 positions and the jobless rate would rise to 8.8 percent, according to the median of 23 forecasts.
“The market wanted a strong number to pound the U.S. dollar lower,” said David Watt, senior currency strategist in Toronto at RBC Capital, a unit of Canada’s biggest bank. “It got it and is running with it.”
Canadian businesses reported record optimism about their sales and said credit conditions were easing for the first time since 2007, the Bank of Canada said today in a quarterly Business Outlook Survey. Sixty-nine percent of executives said sales growth will accelerate over the next year, while another 16 percent expect it to slow, the widest gap since the question was first asked in 1998, the bank said.
Trade Deficit Widens
The Canadian currency increased even after a government report showed the nation’s trade deficit widened to C$1.99 billion ($1.91 billion) in August -- more than double the median forecast of 15 economists in a Bloomberg News survey -- as exports of aircraft, telecommunications gear and automotive products plunged. It’s the best performer today against the U.S. dollar among its 16 most-traded counterparts tracked by Bloomberg.
Australia this week was the first country from the Group of 20 nations to raise interest rates since the start of the financial crisis more than a year ago. A report on Oct. 8 showed Australian employers added 40,600 jobs in September. Economists had estimated there were 10,000 positions lost, according to a Bloomberg News survey.
The Australian dollar slid 0.3 percent today to 90.33 U.S. cents as commodities declined. The Reuters/Jefferies CRB Index of 19 raw materials decreased 0.5 percent.
The U.S. dollar rose against 13 of the 16 most-traded currencies after Federal Reserve Chairman Ben S. Bernanke said the central bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.
By Chris Fournier
Oct. 9 (Bloomberg) -- Canada’s dollar rose to the highest in more than a year and short-term government bonds plunged after a report showed employers added six times more jobs to the country’s workforce last month than economists forecast.
The Canadian currency is heading for a 3.5 percent gain for the week, the biggest five-day advance since July, on speculation the nation could be one of the first economies to emerge from recession. The yield on the two-year Canadian bond climbed, increasing the gap between it and the comparable U.S. Treasury note to the widest since November 2008.
“The bond market is generally weaker in response to the much-better-than-expected Canadian jobs report,” said Sal Guatieri, a senior economist in Toronto at BMO Capital Markets. “It’s possible that theunemployment rate has peaked. People are revising up their estimates for Canadian gross domestic product and employment.”
The Canadian dollar appreciated 0.9 percent to C$1.0429 per U.S. dollar at 3:05 p.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0411, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.89 U.S. cents.
The yield on the two-year Government of Canada security rose 22 basis points, or 0.22 percentage point, to 1.70 percent, 74 basis points more than the two-year U.S. Treasury note’s 0.96 percent yield. The price of the 1.25 percent Canadian note due in December 2011 dropped 45 cents to C$99.06.
Interest-Rate Bets
The jump in job creation sparked speculation that the Bank of Canada may raise interest rates sooner than it previously predicted. The central bank has pledged to leave borrowing costs at a record low 0.25 through June 2010 as long as the inflation outlook doesn’t shift.
The yield on March bankers’ acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99.26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to David Love, a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. The price on the futures moves inversely to expectations for interest rates.
“The market is starting to speculate whether the Bank of Canada will raise interest rates sooner than it conditionally pledged,” BMO’s Guatieri said. “We still think that the bank will not tighten until July next year, but the risks are more evenly balanced now.”
Second Monthly Gain
The unemployment rate dropped to 8.4 percent last month from 8.7 percent in August as employers added a net 30,600 workers for a second straight monthly increase, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted employment would increase by 5,000 positions and the jobless rate would rise to 8.8 percent, according to the median of 23 forecasts.
“The market wanted a strong number to pound the U.S. dollar lower,” said David Watt, senior currency strategist in Toronto at RBC Capital, a unit of Canada’s biggest bank. “It got it and is running with it.”
Canadian businesses reported record optimism about their sales and said credit conditions were easing for the first time since 2007, the Bank of Canada said today in a quarterly Business Outlook Survey. Sixty-nine percent of executives said sales growth will accelerate over the next year, while another 16 percent expect it to slow, the widest gap since the question was first asked in 1998, the bank said.
Trade Deficit Widens
The Canadian currency increased even after a government report showed the nation’s trade deficit widened to C$1.99 billion ($1.91 billion) in August -- more than double the median forecast of 15 economists in a Bloomberg News survey -- as exports of aircraft, telecommunications gear and automotive products plunged. It’s the best performer today against the U.S. dollar among its 16 most-traded counterparts tracked by Bloomberg.
Australia this week was the first country from the Group of 20 nations to raise interest rates since the start of the financial crisis more than a year ago. A report on Oct. 8 showed Australian employers added 40,600 jobs in September. Economists had estimated there were 10,000 positions lost, according to a Bloomberg News survey.
The Australian dollar slid 0.3 percent today to 90.33 U.S. cents as commodities declined. The Reuters/Jefferies CRB Index of 19 raw materials decreased 0.5 percent.
The U.S. dollar rose against 13 of the 16 most-traded currencies after Federal Reserve Chairman Ben S. Bernanke said the central bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.
By Chris Fournier
Oct. 9 (Bloomberg) -- Canada’s dollar rose to the highest in more than a year and short-term government bonds plunged after a report showed employers added six times more jobs to the country’s workforce last month than economists forecast.
The Canadian currency is heading for a 3.5 percent gain for the week, the biggest five-day advance since July, on speculation the nation could be one of the first economies to emerge from recession. The yield on the two-year Canadian bond climbed, increasing the gap between it and the comparable U.S. Treasury note to the widest since November 2008.
“The bond market is generally weaker in response to the much-better-than-expected Canadian jobs report,” said Sal Guatieri, a senior economist in Toronto at BMO Capital Markets. “It’s possible that theunemployment rate has peaked. People are revising up their estimates for Canadian gross domestic product and employment.”
The Canadian dollar appreciated 0.9 percent to C$1.0429 per U.S. dollar at 3:05 p.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0411, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.89 U.S. cents.
The yield on the two-year Government of Canada security rose 22 basis points, or 0.22 percentage point, to 1.70 percent, 74 basis points more than the two-year U.S. Treasury note’s 0.96 percent yield. The price of the 1.25 percent Canadian note due in December 2011 dropped 45 cents to C$99.06.
Interest-Rate Bets
The jump in job creation sparked speculation that the Bank of Canada may raise interest rates sooner than it previously predicted. The central bank has pledged to leave borrowing costs at a record low 0.25 through June 2010 as long as the inflation outlook doesn’t shift.
The yield on March bankers’ acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99.26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to David Love, a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. The price on the futures moves inversely to expectations for interest rates.
“The market is starting to speculate whether the Bank of Canada will raise interest rates sooner than it conditionally pledged,” BMO’s Guatieri said. “We still think that the bank will not tighten until July next year, but the risks are more evenly balanced now.”
Second Monthly Gain
The unemployment rate dropped to 8.4 percent last month from 8.7 percent in August as employers added a net 30,600 workers for a second straight monthly increase, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted employment would increase by 5,000 positions and the jobless rate would rise to 8.8 percent, according to the median of 23 forecasts.
“The market wanted a strong number to pound the U.S. dollar lower,” said David Watt, senior currency strategist in Toronto at RBC Capital, a unit of Canada’s biggest bank. “It got it and is running with it.”
Canadian businesses reported record optimism about their sales and said credit conditions were easing for the first time since 2007, the Bank of Canada said today in a quarterly Business Outlook Survey. Sixty-nine percent of executives said sales growth will accelerate over the next year, while another 16 percent expect it to slow, the widest gap since the question was first asked in 1998, the bank said.
Trade Deficit Widens
The Canadian currency increased even after a government report showed the nation’s trade deficit widened to C$1.99 billion ($1.91 billion) in August -- more than double the median forecast of 15 economists in a Bloomberg News survey -- as exports of aircraft, telecommunications gear and automotive products plunged. It’s the best performer today against the U.S. dollar among its 16 most-traded counterparts tracked by Bloomberg.
Australia this week was the first country from the Group of 20 nations to raise interest rates since the start of the financial crisis more than a year ago. A report on Oct. 8 showed Australian employers added 40,600 jobs in September. Economists had estimated there were 10,000 positions lost, according to a Bloomberg News survey.
The Australian dollar slid 0.3 percent today to 90.33 U.S. cents as commodities declined. The Reuters/Jefferies CRB Index of 19 raw materials decreased 0.5 percent.
The U.S. dollar rose against 13 of the 16 most-traded currencies after Federal Reserve Chairman Ben S. Bernanke said the central bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.
By Chris Fournier
Oct. 9 (Bloomberg) -- Canada’s dollar rose to the highest in more than a year and short-term government bonds plunged after a report showed employers added six times more jobs to the country’s workforce last month than economists forecast.
The Canadian currency is heading for a 3.5 percent gain for the week, the biggest five-day advance since July, on speculation the nation could be one of the first economies to emerge from recession. The yield on the two-year Canadian bond climbed, increasing the gap between it and the comparable U.S. Treasury note to the widest since November 2008.
“The bond market is generally weaker in response to the much-better-than-expected Canadian jobs report,” said Sal Guatieri, a senior economist in Toronto at BMO Capital Markets. “It’s possible that theunemployment rate has peaked. People are revising up their estimates for Canadian gross domestic product and employment.”
The Canadian dollar appreciated 0.9 percent to C$1.0429 per U.S. dollar at 3:05 p.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0411, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.89 U.S. cents.
The yield on the two-year Government of Canada security rose 22 basis points, or 0.22 percentage point, to 1.70 percent, 74 basis points more than the two-year U.S. Treasury note’s 0.96 percent yield. The price of the 1.25 percent Canadian note due in December 2011 dropped 45 cents to C$99.06.
Interest-Rate Bets
The jump in job creation sparked speculation that the Bank of Canada may raise interest rates sooner than it previously predicted. The central bank has pledged to leave borrowing costs at a record low 0.25 through June 2010 as long as the inflation outlook doesn’t shift.
The yield on March bankers’ acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99.26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to David Love, a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. The price on the futures moves inversely to expectations for interest rates.
“The market is starting to speculate whether the Bank of Canada will raise interest rates sooner than it conditionally pledged,” BMO’s Guatieri said. “We still think that the bank will not tighten until July next year, but the risks are more evenly balanced now.”
Second Monthly Gain
The unemployment rate dropped to 8.4 percent last month from 8.7 percent in August as employers added a net 30,600 workers for a second straight monthly increase, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg predicted employment would increase by 5,000 positions and the jobless rate would rise to 8.8 percent, according to the median of 23 forecasts.
“The market wanted a strong number to pound the U.S. dollar lower,” said David Watt, senior currency strategist in Toronto at RBC Capital, a unit of Canada’s biggest bank. “It got it and is running with it.”
Canadian businesses reported record optimism about their sales and said credit conditions were easing for the first time since 2007, the Bank of Canada said today in a quarterly Business Outlook Survey. Sixty-nine percent of executives said sales growth will accelerate over the next year, while another 16 percent expect it to slow, the widest gap since the question was first asked in 1998, the bank said.
Trade Deficit Widens
The Canadian currency increased even after a government report showed the nation’s trade deficit widened to C$1.99 billion ($1.91 billion) in August -- more than double the median forecast of 15 economists in a Bloomberg News survey -- as exports of aircraft, telecommunications gear and automotive products plunged. It’s the best performer today against the U.S. dollar among its 16 most-traded counterparts tracked by Bloomberg.
Australia this week was the first country from the Group of 20 nations to raise interest rates since the start of the financial crisis more than a year ago. A report on Oct. 8 showed Australian employers added 40,600 jobs in September. Economists had estimated there were 10,000 positions lost, according to a Bloomberg News survey.
The Australian dollar slid 0.3 percent today to 90.33 U.S. cents as commodities declined. The Reuters/Jefferies CRB Index of 19 raw materials decreased 0.5 percent.
The U.S. dollar rose against 13 of the 16 most-traded currencies after Federal Reserve Chairman Ben S. Bernanke said the central bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.
By Chris Fournier
Oct. 9 (Bloomberg) -- Canada’s dollar rose to the highest in more than a year and short-term government bonds plunged after a report showed employers added six times more jobs to the country’s workforce last month than economists forecast.
The Canadian currency is heading for a 3.5 percent gain for the week, the biggest five-day advance since July, on speculation the nation could be one of the first economies to emerge from recession. The yield on the two-year Canadian bond climbed, increasing the gap between it and the comparable U.S. Treasury note to the widest since November 2008.
“The bond market is generally weaker in response to the much-better-than-expected Canadian jobs report,” said Sal Guatieri, a senior economist in Toronto at BMO Capital Markets. “It’s possible that theunemployment rate has peaked. People are revising up their estimates for Canadian gross domestic product and employment.”
The Canadian dollar appreciated 0.9 percent to C$1.0429 per U.S. dollar at 3:05 p.m. in Toronto, from C$1.0518 yesterday. It touched C$1.0411, the strongest since Sept. 29, 2008. One Canadian dollar buys 95.89 U.S. cents.
The yield on the two-year Government of Canada security rose 22 basis points, or 0.22 percentage point, to 1.70 percent, 74 basis points more than the two-year U.S. Treasury note’s 0.96 percent yield. The price of the 1.25 percent Canadian note due in December 2011 dropped 45 cents to C$99.06.
Interest-Rate Bets
The jump in job creation sparked speculation that the Bank of Canada may raise interest rates sooner than it previously predicted. The central bank has pledged to leave borrowing costs at a record low 0.25 through June 2010 as long as the inflation outlook doesn’t shift.
The yield on March bankers’ acceptance futures, a barometer of short-term interest rates, rose as much as nine basis points as the contract traded as low as 99.26 on speculation a quickening recovery will force the central bank to raise rates before mid-2010, according to David Love, a trader of interest- rate derivatives at Le Group Jitney Inc., a Montreal brokerage. The price on the futures moves inversely to expectations for interest rates.
“The market is starting to speculate whether the Bank of Canada will raise interest rates sooner than it conditionally pledged,” BMO’s Guatieri said. “We still think that the bank will not tighten until July next year, but the risks are more evenly balanced now.”
Second Monthly Gain
The unemployment rate dropped to 8.4 percent last month from 8.7 perc
