* The Canadian dollar climbs 0.4 percent against the US dollar.
* Canada generates 231,000 jobs in June * The price of oil in the United States rises by 1.4 percent * Canadian bond yields rise across a steeper curve
(Reuters) – TORONTO, July 9 (Reuters) – On Friday, the Canadian currency rose versus the US dollar as global stock markets stabilized and local statistics showed the economy adding jobs in June, recouping some of this week’s losses.
As public health restrictions were removed in some regions of the country, Statistics Canada statistics showed that Canada added 231,000 jobs in June, more than projected, putting employment within 1.8 percent of pre-pandemic levels. It comes after losses in the prior two months.
World stock markets rebounded after a severe drop the day before, fueled by concerns that the Delta coronavirus variant’s spread could stymie economic recovery.
Because Canada is a significant producer of commodities, notably oil, the loonie is vulnerable to global economic conditions.
Oil prices rose for a second day after data showed a drop in US stocks, but they remained on track for a weekly loss due to concerns about global supplies following an OPEC+ impasse.
The Canadian dollar was trading 0.4 percent higher at 1.2488 to the greenback, or 80.08 US cents, as U.S. crude rose 1.4 percent to $73.99 a barrel.
The currency fell to 1.2590 on Thursday, its lowest level in two and a half months. It was expected to fall 1.4 percent this week.
According to a Reuters survey of analysts, the Bank of Canada would trim its asset purchases again at its July 14 meeting, pleased by strong growth predictions. The spread of new COVID-19 variations was also named as the biggest economic risk this year.
Bond rates in Canada were higher throughout most of a steeper curve, matching the advance in US Treasuries. After striking its lowest level in almost four months on Thursday, the 10-year rose 4.1 basis points to 1.306 percent.
(Fergal Smith contributed reporting, and Jonathan Oatis edited the piece.)/n
