Tuesday, July 22nd14.9°C
21452
22455

Major misses on employment send Canadian dollar tumbling almost half a cent

TORONTO - The Canadian dollar dropped sharply Friday, falling well below 92 cents US amid major disappointments on Canadian and U.S. jobs data.

The loonie was well off the worst levels of the session but still down 0.42 of a cent at 91.73 cents US. Earlier it fell to 91.36 cents US, its lowest level since September 2009.

Statistics Canada reported that the economy shed 45,900 jobs last month, a major miss as economists had expected it to have created about 14,600 jobs in December. The jobless rate came in at 7.2 per cent, up from 6.9 per cent in November.

And in the U.S., the Labor Department said the American economy cranked out only 74,000 jobs as opposed to the 200,000 that economists had forecast.

Expectations had been ratcheted up after payroll firm ADP reported Wednesday that the private sector alone created 238,000 jobs last month, while other data Thursday showed a continuing decline in those filing for jobless benefits.

Traders hoped that the U.S. jobs data would provide some direction on how the U.S. Federal Reserve plans to further reduce its monthly purchases of bonds. The Fed said in December that the key stimulus would be reduced to $75 billion a month from $85 billion, starting in January. It said further adjustments would depend on economic performance, particularly the job market.

It's been a brutal week for the loonie, which has fallen about 2.3 cents US since last Friday, buffetted by data that showed Canada's trade deficit grew last fall. Another report showed the U.S. trade deficit dropped 12.9 per cent in November to its lowest level in four years. Imports, including Canadian crude oil, dropped 1.4 per cent.

And the Bank of Canada has turned dovish on interest rates with a hike not expected until next year.

Also, the U.S. dollar has strengthened on speculation about how fast the U.S. Federal Reserve might reduce its massive bond buying program.

Commodity prices were higher with the February crude contract on the New York Mercantile Exchange ahead $1.06 to US$92.72 a barrel.

March copper gained four cents to US$3.34 a pound while speculation about Fed intentions pushed February gold bullion up $17.50 to US$1,246.90 an ounce.

The Canadian Press


Read more Business News

21723


Recent Trending




Today's Market
S&P TSX15249.99-16.58
S&P CDNX1006.48-5.76
DJIA17051.73-48.45
Nasdaq4424.704-7.442
S&P 5001973.63-4.59
CDN Dollar0.9314+0.0002
Gold1313.40+4.2001
Oil104.90+0.31
Lumber327.80+1.50
Natural Gas3.842-0.007

 
Okanagan Companies
Pacific Safety0.20+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.055-0.005
Anavex Life Sciences0.348+0.008
Metalex Ventures0.065-0.005
Russel Metals34.99-0.16
Copper Mountain Mining2.69-0.01
Colorado Resources0.20-0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.18-0.03

 



21269

FEATURED Property
1868825#1504, 1152 Sunset Drive
2 bedrooms 2 baths
$469,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22461