Canada dollar dips after U.S. jobless data; China growth eyed

Thu Oct 18, 2012 10:25am EDT
 
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By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar slipped against its U.S. counterpart on Thursday after disappointing U.S. jobless claims data removed some shine from a global outlook that was buoyed overnight by signs China's economy may be pulling out of a slowdown.

The number of Americans filing new claims for unemployment benefits rose last week, reversing a sharp decline the previous week, but still pointing to a labor market that is slowly healing.

The higher U.S. jobless claims data trumped better-than-expected Canadian wholesale sales figures released at the same time.

"It's just another reason to take off a little bit of risk," said John Curran, senior vice president at CanadianForex, referring to the jobless data. "I think people are mostly focusing on what'll come out of Europe."

The leaders of Europe's two central powers, Germany and France, clashed over greater EU control of national budgets and moves toward a single banking supervisor on Thursday, hours before a two-day European Union summit starts in Brussels.

At 9:37 a.m. (1337 GMT) the Canadian dollar was trading at C$0.9815 to the greenback, or $1.0188, compared with C$0.9780, or $1.0225, at Wednesday's North American close.

CHINA REBOUND, BANK OF CANADA EYED

The resource-linked Canadian currency had strengthened overnight after data showed that China, one of the world's hungriest consumers of many commodities, had likely hit the bottom of a seven-quarter long economic downturn between July and September.   Continued...