Falling Canadian dollar coins or loonies are pictured in North Vancouver, B.C. Wednesday, May 29, 2019. THE CANADIAN PRESS/Jonathan Hayward

TSX sets record, loonie soars to three-year high on strong jobs report

The Canadian dollar traded for 80.04 cents US

Strong employment numbers for February propelled the Canadian dollar to a three-year high while the TSX climbed for a sixth-straight day to set another record close.

The Canadian dollar traded for 80.04 cents US after hitting an intraday high of 80.26, compared with 79.61 cents US on Thursday.

“Everything’s firing on all cylinders for the Canadian dollar this week. It’s literally up four days in a row,” said Erik Bregar, head of currency strategy at the Exchange Bank of Canada.

Sentiment was buoyed Friday by “blowout” Canadian jobs numbers, he said.

The Canadian economy added 259,000 jobs last month, whipping past expectations to pull the country closer to pre-pandemic employment levels.

One year into the pandemic, Canada’s job market is 599,100 jobs short of where it was in February of last year, or 3.1 per cent below pre-pandemic levels.

“That was some icing on the cake for our Canadian dollar,” Bregar said in an interview.

He said the loonie could climb higher if stock markets and global oil prices continue to rise.

“I wouldn’t be surprised to see us at the 83 cents mark if the S&P and WTI continue higher over the next three months,” Bregar wrote in a recent email. That level hasn’t been reached since May 2015.

The stronger currency would be good for cross-border shoppers if it weren’t for the fact that the border with the U.S. is closed and airlines have cut service at the government’s request to contain the spread of COVID-19.

Still, Canadians can prepay for holidays or purchase and save U.S. dollars for the eventual trip.

The S&P/TSX composite index was down for most of the day but inched up 6.75 points to a record close of 18,851.31 after hitting an intraday low of 17,297.75.

In New York, the Dow Jones industrial average and S&P 500 reached record closes with the 30-stock Dow up 293.05 points to 32,778.64. The S&P 500 index was up 4.0 points at 3,943.34, while the Nasdaq composite was down 78.81 points at 13,319.8.

Markets were down for most of the day as U.S. 10-year bond yields hit a high of 1.642 per cent. Bregar said yields rose on news that primary dealers sold a record amount of treasuries in the week ending March 3.

He said there’s some nervousness about the expiry on March 31 of some regulatory exemptions that allowed banks to horde U.S. treasuries without affecting some leverage ratios.

“I think that’s what’s made overall risk sentiment a little bit softer today,” Bregar said.

He said the stock market doesn’t seem to mind increasing yields as long as the increases are “slow and manageable.”

“What it freaks out about is when it happens too quickly.”

Financials, energy and materials were among the sectors that rose on the TSX.

Energy was up slightly despite lower crude oil prices with shares of Vermilion Energy Inc. up 2.6 per cent and Suncor Energy Inc. 1.7 per cent higher.

The April crude oil contract was down 41 cents at US$65.61 per barrel and the April natural gas contract was down 6.8 at US$2.60 per mmBTU.

Materials rose slightly even though gold was lower.

The April gold contract was down US$2.80 at US$1,719.80 an ounce and the May copper contract was up one tenth of a cent at US$4.14 a pound.

BlackBerry Ltd. gained 10.8 per cent to move technology up while Lightspeed POS Inc. rose 6.9 per cent after announcing another acquisition late Thursday.

North American stock markets ended the week higher despite initial concerns about inflation that ended up being benign.

The TSX gained 2.6 per cent to increase 8.1 per cent so far in 2021. The S&P 500 was also up 2.6 per cent on the week, the Dow 4.1 per cent and Nasdaq 3.1 per cent.

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

B.C's COVID-19 dashboard shows the peaks and valleys of cases prior to the record daily report of 132 on April 9, 2021. (Dashboard image)
Interior Health has record day of COVID-19 cases

132 cases reported Friday, April 9, more deaths in Vernon hospital outbreak

Tri-Kon will be delivering concrete barriers on Friday afternoon for a patio space that will be shared between Soulfood Farm to Table and Sakura.Trevor Crawley photo.
Outdoor patios in the works for downtown core

Efforts already underway to set up outdoor patios on Baker St. from four local business

The BC Wildfire Service will be conducting an ecosystem restoration burn near the old Kimberley airport next week. BC Wildfire Service file.
Ecosystem restoration burn planned for old Kimberley airport area next week

Burn could begin as early as Monday, April 12, 2021

From wall hangings to plant hangers, keychains and shelves, Radiant Knots creates a variety of pieces to suit for any taste and style.
Cranbrook Arts is Looking Radiant

Cranbrook Arts Featured Artist for the month of April is Radiant Knots.… Continue reading

The Peach is adhering to the mandatory mask protocols put in place by the Provincial Health Officer on Nov. 19. (Monique Tamminga Western News)
Interior Health doesn’t echo B.C.’s daily COVID record

80 new cases reported Thursday, April 8, compared to 91 the day prior

The new 6,300 square foot Cranbrook Food Bank facility is located at 1624 Industrial Rd 2 and is open to the public Monday, Wednesday and Friday from 9:30 a.m. to 2:00 p.m. (Corey Bullock/Cranbrook Townsman file)
New Cranbrook Food Bank officially open to the public

The new facility is located at 1624 Industrial Rd. 2 and open Monday, Wednesday, Friday

A vehicle that was driven through the wall of a parkade at Uptown Shopping Centre and into the nearby Walmart on April 9 was removed through another hole in the wall later that night. (Photo via Saanich Police Department and Ayush Kakkar)
Vehicle launched into B.C. Walmart removed following rescue of trapped workers

Crews cut new hole in parkade wall to remove vehicle safely

Four members with Divers for Cleaner Lakes and Oceans were out at Cultus Lake on March 28 and 29 hauling trash out of the waters. (Henry Wang)
PHOTOS: Out-of-town divers remove 100s of pounds of trash from Cultus Lake

Members of Divers for Cleaner Lakes and Oceans hauled out 470 pounds of trash over two days

As of Saturday, April 10, people born in 1961 are the latest to be eligible for a COVID-19 vaccine. (Black Press files)
B.C. residents age 60+ can now register to get their COVID-19 vaccine

Vaccine registration is now open to people born in 1961 or earlier

A new saline gargle test, made in B.C., will soon be replacing COVID-19 nasal swab tests for kids. (PHSA screenshot)
Take-home COVID-19 tests available for some B.C. students who fall ill at school

BC Children’s Hospital plans to provide 1,200 kits to Vancouver district schools this April

Ruming Jiang and his dog Chiu Chiu are doing fine following a brush with hypothermia that saw several people work together to get them out of the Fraser River near Langley’s Derby Reach Park on March 25, 2021 (Special to the Advance Times)
Man finds men who rescued him from drowning in B.C.’s Fraser River

A grateful Ruming Jiang says he will thank them again, this time in person when the pandemic ends

Tyson Ginter, 7, is proud of his latest Hot Wheels he recently received by Quesnel RCMP Const. Matt Joyce. (Photo submitted)
B.C. Mountie handing out toy cars to light up children’s faces

‘A lot of times it will be the only interaction they have with the police,’ says Const. Matt Joyce

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read