The Globe and Mail reports in its Saturday edition that the loonie weakened to a one-week low against the greenback on Friday as domestic data showing an unexpected decline in jobs diminished prospects of the Bank of Canada turning more upbeat on the economy. A Reuters dispatch to The Globe reports that a six-month string of employment gains had helped bolster investor sentiment, offsetting weak gross domestic product data and a slowdown in the global economy that could hurt Canada's exports. In March, however, Canada shed 7,200 jobs. Analysts in a Reuters poll had forecast a marginal gain of 1,000.
Perceived chances of an interest-rate cut this year from the central bank nudged up to 40 per cent from 38 per cent before the data, the overnight index swaps market indicated.
The currency is down 0.3 per cent for the week.
The loonie has advanced 1.9 per cent since the start of the year even as it has lost ground since February, making it the second best performing currency in the G10 after sterling.
Still, strategists see little upside for the Canadian dollar over the coming months, cutting their bullish forecasts for the currency as worries about the global economy boost demand for higher-yielding U.S. dollars.
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