Skip to main content

The Globe and Mail

Loonie closes at three-month low ahead of jobs report

Canadian dollars.

JONATHAN HAYWARD/THE CANADIAN PRESS

The Canadian dollar closed at a three-month low Tuesday amid mixed economic news.

The loonie ended down 0.28 of a cent at 91.24 cents (U.S.), its lowest close since May 2.

In Canada, the major economic report of the week is July employment data that come out on Friday. Economists expect that about 25,000 jobs were created during the month.

Story continues below advertisement

Ahead of the jobs figures, data out Tuesday showed that reports on the U.S. non-manufacturing sector and factory orders beat forecasts.

The U.S. Institute for Supply Management's non-manufacturing index showed solid expansion, climbing to 58.7 in July from 56 in June, versus the 56.5 number that economists had expected.

June factory orders climbed 1.1 per cent after dropping 0.5 per cent, much better than the 0.6 per cent rise that was expected.

Overseas, service industries in the world's second-biggest economy grew at the slowest rate last month since November, 2005. The HSBC index of China service business activity fell to 50 in July from 53.1 in the previous month.

The weak figure shows the impact of a slowdown in China's property market, said HSBC chief China economist Qu Hongbin.

Other data pointed to signs that the euro zone economy continues to mend.

Financial information company Markit said Tuesday that its purchasing managers' index – a key survey of business activity – for the 18-country euro zone rose a point to a three-month high of 53.8 in July.

Story continues below advertisement

Growth in the euro zone has been paltry since emerging from its longest-ever recession over a year ago. Markit's July survey points to a quarterly growth rate of 0.4 per cent, which equates to an annualized rise of just 1.6 per cent.

Commodity prices were lower as September crude lost 91 cents to $97.38 a barrel, the soft Chinese data helped push September copper down 4 cents to $3.20 a pound while December bullion faded $3.60 to $1,285.30 an ounce.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨