Canadian dollar rises after Statistics Canada says revised July jobs data blew
October 8, 2019
TORONTO — The Canadian dollar was higher Friday as revised jobs data for July blew past expectations.[np_storybar title=”What Bay Street is saying about the corrected jobs report” link=”https://business.financialpost.com/2014/08/15/canada-jobs-july-2014/business.financialpost.com/2014/08/15/jobs-canada-statistics-canada/”%5D PAUL FERLEY, ASSISTANT CHIEF ECONOMIST AT ROYAL BANK OF CANADA:“A totally different story here … with the revision, suggesting a totally different picture in terms of the employment conditions in July, the very strong overall increase.” Read more. [/np_storybar]The loonie was ahead 0.21 of a cent to 91.93 cents US as Statistics Canada reported that the economy added 42,000 positions last month. Economists had generally expected that about 20,000 jobs were created during July.The federal agency had said earlier this week that it had discovered an error in its jobs data originally released last Friday, showing the economy added a meagre 200 jobs.The agency says the error resulted from a major redesign of its market-moving Labour Force Survey that occurs every 10 years when one program was not updated, which it calls a human error. The mistake resulted in Statistics Canada overestimating full-time job losses.The loonie also advanced amid solid manufacturing numbers.Statistics Canada also reported that manufacturing sales rose 0.6% in June to $52 billion, the fifth gain in six months. The gain stemmed from a three increase in non-durable goods sales, led by the chemical, petroleum and coal product as well as the food industries.The agency added that lower sales in the motor vehicle industry offset a portion of the gains in June. Sales in the industry were down 8.6% to $4.5 billion, the first decrease following two months of strong gains.The mood on financial markets was improved Friday amid a further easing of tensions in the Russia-Ukraine standoff.Russia let Ukrainian officials inspect an aid convoy on Friday and agreed to let the Red Cross distribute the aid around the rebel-held city of Luhansk, which dispelled Ukrainian fears that the aid operation is a ruse to get military help to separatist rebels.Markets had been further reassured after Russia’s President Vladimir Putin appeared to tone down his rhetoric on Ukraine, where pro-Russian rebels are waging an insurgency in Ukraine’s east. He said Russia’s goal was “to stop bloodshed in Ukraine as soon as possible.”Prices were mixed on commodity markets with September crude in New York ahead 22 cents to US$95.80 a barrel.September copper gained a penny to US$3.10 a pound.The easing of geopolitical tensions pushed gold prices down sharply. December bullion fell $11.40 to US$1,304.30 an ounce.