CANADA FX DEBT-C$ skids to 1-week low on soft job, housing data

Fri Feb 8, 2013 5:21pm EST
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* C$ ends at C$1.0027 vs US$, or $0.9973

* Hits lowest level since January, seen weakening further

* Bond prices rally, outperform Treasuries

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

By Alastair Sharp

TORONTO, Feb 8 (Reuters) - The Canadian dollar slid to a one-week low on Friday after data showed Canada unexpectedly lost jobs in January and housing starts were much lower than forecast, spurring traders to reduce bets that interest rates would go up this year.

Canada's economy shed 21,900 jobs last month, a sharp pullback from several months of oversized gains. Separate data showed Canada posted a record trade deficit last year and housing starts hit their lowest since mid-2009, when the market was sideswiped by the global financial crisis.

The data put more pressure on the loonie, as Canada's dollar is colloquially called, which fell below parity with the U.S. currency for the first time this week. It breached that level for much of late January after the Bank of Canada said its next rate increase was "less imminent."   Continued...