REFILE-CANADA FX DEBT-C$ skids to 1-week low after jobs, housing data miss

Fri Feb 8, 2013 12:52pm EST
 
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* C$ hits session low of C$1.0037 vs US$, or $0.9963

* Bond prices rally, outperform Treasuries

* Canada's economy sheds 21,900 jobs in January

By Claire Sibonney

TORONTO, Feb 8 (Reuters) - The Canadian dollar slid to its lowest level in more than a week on Friday after data showed Canada unexpectedly lost jobs in January and housing starts were much lower than forecast, spurring traders to reduce bets on an interest rate hike this year.

Canada's economy shed 21,900 jobs last month, but a drop in the number of people seeking work pushed the unemployment rate down to a four-year low of 7.0 percent.

Market analysts had forecast a gain of 5,000 positions after strong job gains in three of the previous four months.

"Clearly the 300,000 jobs creation last year was unsustainable and we have to brace ourselves for something more sustainable this year," said Stefane Marion, chief economist at National Bank Financial.   Continued...