Bloomberg News

Canada’s Dollar Snaps Five-Day Win Streak as Risk Rally Pauses

December 01, 2011

Dec. 1 (Bloomberg) -- Canada’s dollar ended five days of gains against its U.S. counterpart as traders trimmed positions on higher-yielding assets before key employment reports tomorrow in the U.S. and Canada.

The Canadian currency fluctuated as U.S. stock-index futures and crude oil was little changed. The loonie, as Canada’s dollar is known, was headed for a 2.8 percent gain this week after coordinated central-bank measures relieved some concern Europe’s sovereign-debt crisis is worsening. Economists forecast a Statistics Canada report tomorrow will show job growth resumed.

“I expect some consolidation today ahead of the employment data tomorrow; the market has already had a lot to digest,” Steve Butler, managing director of foreign-exchange trading in Toronto at Bank of Nova Scotia’s Scotia Capital unit, said in an e-mail message. “The patient has had another round of surgery,” he said of countries of the euro region, “but the bottom line is they are still on life support.”

Canada’s currency declined as much as 0.5 percent to C$1.0223 per U.S. dollar before trading at C$1.0177 at 8:15 a.m. in Toronto. One Canadian dollar buys 98.26 U.S. cents.

Futures on the Standard & Poor’s 500 Index slipped 0.1 percent.

--Editors: Kenneth Pringle, Greg Storey

To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia at cfournier3@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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