Canadian dollar slips ahead of U.S., Canada jobs data

Fri Dec 7, 2012 8:15am EST
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By Claire Sibonney

TORONTO (Reuters) - The Canadian dollar eased against the U.S. dollar in early trading on Friday following three straight days of gains, but moves were limited ahead of jobs reports from both Canada and the United States.

Economists expect the United States to have added 93,000 jobs and Canada to have added 10,000 jobs. Both releases are due at 8:30 a.m.

"Unless we're really far off expectations ... the U.S. is going to overshadow Canada," said David Bradley, director of foreign exchange trading at Scotiabank.

"If the U.S. comes in quite a bit stronger, it's probably going to be a risk-on environment, so you're going to see the U.S. dollar sell off, equities rally, and you should see commodity currencies do better."

Until then, the currency was seen taking cues from global equities, which also edged lower on uncertainty over U.S. budget plans and the darkening outlook for the European economy. .N <MKTS/GLOB>

Germany's central bank said it expected Europe's largest economy to grow just 0.4 percent in 2013, and pointed to risks of a recession as the euro zone debt crisis takes its toll.

At 7:50 a.m., the Canadian dollar stood at C$0.9932 versus the greenback, or $1.0068, compared with Thursday's North American session close at C$0.9911, or $1.0090 U.S. cents. The currency was trading in a tight range between C$0.9910-C$0.9934.

Canada's dollar hit a one-month high in the previous session, building on gains from earlier in the week after the Bank of Canada kept its bias towards future rate hikes.   Continued...