The Canadian dollar has recently reached a two-week high, as businesses have added five times more employees than expected. In August 34,300 employees were hired, and just in September these businesses have added 52,100 jobs, which was more than 40,000 jobs than the forecast. The increase in number of jobs dropped the unemployment rate to 7.3%, lower than the American’s 7.8% unemployment rate.

With this news, the Canadian dollar went up 0.5% this week, making $1 loonie buy $1,0219 American dollars, making it reach the highest level in the past few weeks.  Because of these new numbers the Bank of Canada wants to take out stimulus out of the Canadian Market sooner, and may target to increase the interest rate.

Even though the employment in the oil industry increased, the price of oil expects a drop of 2% to $89.90 a barrel, because of a greater  supply than demand. In my option the drop in price of oil will cause less people getting hired in October because  companies may want to slow down production of oil causing  the prices of oil to rise.

References: http://www.bloomberg.com/news/2012-10-05/canada-dollar-rallies-as-u-s-canada-jobs-gains-fuel-demand.html