The Canadian dollar traded lower against other major currencies on Friday after the release of disappointing U.S. jobs data.
Job growth in U.S. came in at an anemic rate in May sending the unemployment rate up slightly for the month, according to figures released today by the Labor Department.
The economy added a net of just 69,000 new jobs in May, far lower than the 150,000 expected by most economists.
Furthermore, the already week job creation numbers posted for April were revised down sharply to show a gain of just 77,000 positions, 38,000 fewer than the 115,000 initially reported.
At the same time, the unemployment rate ticked up to 8.2 percent in May from the 8.1 percent reported in April, a disappointing figure to economists who had predicted that the rate would hold level.
The loonie extended its slide against the U.S. dollar and touched 1.0445, a level not seen since November 28, 2011. On the downside, the loonie may target 1.05 level. The pair ended Thursday's deals at 1.0330.
Statistics Canada said real gross domestic product rose 0.5 percent in the first quarter, the same pace as in the previous quarter. On a monthly basis, real GDP by industry edged up 0.1 percent in March. Business investment contributed the most to first-quarter GDP growth, with final domestic demand growing 0.3 percent.
Against the Australian dollar, the loonie fell to as low as 1.0066 from yesterday's close of 1.0058. If the loonie falls further, it may target 1.01 level.
The Canadian currency declined to a fresh multi-day low of 1.2891 against the euro with 1.295 seen as the next downside target level. At yesterday's close, the pair traded at 1.2774.
The loonie that touched a new multi-month low of 74.45 against the yen at 8:35 am ET rebounded immediately and the pair is now trading at 75.14. The loonie-yen pair was worth 75.85 at yesterday's close.
by RTT Staff Writer
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