Canadian Dollar Weakens Against US Dollar After Canadian Jobs Data

by The Daily Lede

TORONTO–The Canadian dollar slumped against the U.S. dollar early Friday, after a weaker-than-expected reading of the Canadian labor market in April pushed investors back to the safety of the greenback.

The U.S. dollar was recently at C$1.0878, from C$1.0830 right before the release of the labor figures and C$1.0831 late Thursday, according to data provider CQG.

Canada shed 28,600 jobs in April, while keeping the jobless rate steady at 6.9%, Statistics Canada said Friday. Economists expected Canada to add 13,500 jobs in April, while keeping its unemployment rate steady at 6.9% from the prior month, the lowest reading since January 2009.

The U.S. dollar broke past key technical levels at C$1.0860 immediately after the release of the jobs figures, but should continue to trend around the C$1.09 psychological resistance level, according to Scotiabank.

The Canadian dollar is likely to remain under downward pressure for much of Friday’s trading session. There are no significant U.S. economic releases, leaving the loonie to remain influenced by week-end flows and speeches from Federal Reserve officials.