WSJ: Canadian Dollar Hit After US Jobs, Domestic GDP
By KAREN JOHNSON
The Canadian dollar extended its overnight losses Friday morning, slumping to lows not seen since November of last year, as a deeply disappointing U.S. jobs report had investors scrambling toward market safety.
The U.S. dollar surged a half-penny in the wake of the data, to C$1.0443, from C$1.0390 just ahead of the report. It was at C$1.0328 late Thursday, according to data provider CQG.
The U.S. economy added only 69,000 new jobs in May, according to the nonfarm payrolls report, widely missing expectations for 155,000 new jobs. The U.S. jobless level ticked higher, to 8.2%, from 8.1% in April.
The U.S. data sparked fresh fears the U.S. recovery is losing momentum. Those fears, combined with rising concerns about the European debt crisis and worrying signs from the Chinese economy, sent investors scrambling into the market's safe havens early Friday.
In Canada, meanwhile, data showed annualized gross domestic product growth of 1.9% for the first quarter, matching market expectations.