By Commodity News Service Canada
WINNIPEG, Jan. 9 The Canadian dollar was sharply lower relative to the U.S. dollar Friday morning, reacting to disappointing Canadian employment data, analysts said.
Statistics Canada said 4,300 jobs were lost during the month of December, while pre-report expectations called for 10,000 new jobs. The unemployment rate remained unchanged at 6.6 per cent.
At 8:58 CST Friday the Canadian dollar was at U.S.$0.8425 or U.S.$=C$1.1869, which compares with Thursday’s North American close of U.S.$0.8449 or U.S.$=C$1.1836.
Better than expected U.S. employment data was also bearish, as it reinforced ideas that the U.S. will raise interest rates before Canada does.
Continued weakness in crude oil values added to the softer tone in the loonie, as it will likely have a negative impact on the Canadian economy.
The TSX was up 26.89 points, or 0.19%, at 8:58 CST Friday morning to sit at 14,484.61.
