C$ recovers from 10-day low after record jobs gain

TORONTO: The Canadian dollar was little changed against its US counterpart on Friday as investors weighed a record domestic jobs gain and rising US coronavirus cases, with the loonie recovering from an earlier 10-day low.

Canada's economy added 952,900 jobs in June, mostly in the service sector, as firms reopened following closures triggered by COVID-19, data from Statistics Canada showed. Economists had expected an increase of 700,000.

World stocks and the price of oil, one of Canada's major exports, were choppy as record new coronavirus cases in several US states raised concerns that more lockdowns may be necessary, making a quick economic recovery unlikely. US crude prices were down 0.1% at $39.58 a barrel.

"The market had priced in the initial phase of a V-shaped recovery and maybe there are more questions now about the sustainability of reopening plans and the forward risks," said Derek Holt, vice president of capital markets economics at Scotiabank.

The loonie was trading nearly unchanged at 1.3580 to the greenback, or 73.64 US cents, having touched its weakest intraday level since June 30 at 1.3631. The currency was on track to weaken 0.3% for the week.

The economic recovery under way in Canada will be stronger in the near-term than expected a few months ago, according to a Reuters poll of economists who said a resurgence in coronavirus infections and high unemployment were the two biggest risks.

Canadian government bond yields were mixed across a flatter curve, with the 10-year down 1.3 basis points at 0.521%.