Forex News – Canadian dollar dips on soft jobs numbers
May 10, 2013 4:08 pm
The Canadian dollar fell to its lowest level since April 29 against the greenback, after disappointing Canadian jobs data.
The Canadian economy created only 12,500 more positions, less than the projected 15,000 new jobs., while the jobless rate remained the same at 7.2 percent.
In contrast to the Canadian employment scene, Canada’s neighbor’s to the south have an improving labor market. Last week’s surge in US nonfarm payrolls and Thursday’s drop in initial jobless claims numbers show the American economy is showing signs of recovery.
The strong US jobs data has propelled the US dollar against most of its major peers and hit a four-year high against the yen.
After today’s data, USDCAD surged to $1.0151 from $1.0071.
Mark Chandler, Head of Canadian Fixed Income and Currency at RBC Capital made the following comments:
“The numbers were very close to consensus. It was sort of a mixed bag on the details, with some of it positive – like the 36,000 increase in full-time (jobs), but private employment was down 20,000 and if you look on a year-on-year basis it is basically flat.”
“It’s been a sort of disappointing start to the year on employment, but some of that also reflects the inexplicably strong growth that we had in the second half of last year.”
The Canadian dollar fell to its lowest level since April 29 against the greenback, after disappointing Canadian jobs data.
The Canadian economy created only 12,500 more positions, less than the projected 15,000 new jobs., while the jobless rate remained the same at 7.2 percent.
In contrast to the Canadian employment scene, Canada’s neighbor’s to the south have an improving labor market. Last week’s surge in US nonfarm payrolls and Thursday’s drop in initial jobless claims numbers show the American economy is showing signs of recovery.
The strong US jobs data has propelled the US dollar against most of its major peers and hit a four-year high against the yen.
After today’s data, USDCAD surged to $1.0151 from $1.0071.
Mark Chandler, Head of Canadian Fixed Income and Currency at RBC Capital made the following comments:
“The numbers were very close to consensus. It was sort of a mixed bag on the details, with some of it positive – like the 36,000 increase in full-time (jobs), but private employment was down 20,000 and if you look on a year-on-year basis it is basically flat.”
“It’s been a sort of disappointing start to the year on employment, but some of that also reflects the inexplicably strong growth that we had in the second half of last year.”
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