By Fergal Smith
TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday as investors weighed a record domestic jobs gain and rising U.S. 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 <.WORLD> and the price of oil, one of Canada's major exports, were choppy as record new coronavirus cases in several U.S. states raised concerns that more lockdowns may be necessary, making a quick economic recovery unlikely. U.S. crude (CLc1) 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
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 (CA10YT=RR) down 1.3 basis points at 0.521%.