Canada dollar strengthens to one-week high after job reports

Fri Nov 2, 2012 9:54am EDT
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By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar strengthened to a one-week high against its U.S. counterpart on Friday after data showed that U.S. employers stepped up hiring in October even as Canadian jobs growth slowed.

The currency brushed off a tepid domestic employment report to cheer a larger-than-expected gain in U.S. payrolls that signaled hope for an economic recovery in Canada's biggest trading partner.

"What we're seeing is a rally in risk-related assets, including the Canadian dollar, because of a better-than-expected U.S. employment reading," said Doug Porter, deputy chief economist at BMO Capital Markets.

At 9:25 a.m. (1325 GMT) the Canadian dollar was trading at C$0.9944 to the greenback, or $1.0056, despite the U.S. currency itself hitting a near two-month high against a basket of currencies. .DXY

The Canadian dollar closed Thursday's North American session at C$0.9968, or $1.0032.

The currency at one point hit C$0.9936, its strongest level since October 25.

It also firmed against other major currencies, including the euro, Australian dollar and yen.

The Canadian job market stalled in October after two months of strong hiring, reflecting sluggish economic growth.   Continued...

Canadian currency in the form of twenty dollar bills are displayed in this posed photograph in Toronto, October 22, 2008. REUTERS/Mark Blinch