CANADA FX-C$ hits strongest in more than a week after U.S. data

Thu Apr 25, 2013 10:10am EDT
 
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* C$ at C$1.0209 vs US$, or 97.95 U.S. cents

* C$ touches one-week high after U.S. jobless claims

* U.S. dollar broadly weaker

By Andrea Hopkins

TORONTO, April 25 (Reuters) - The Canadian dollar hit its strongest level in more than a week against its U.S. counterpart on Thursday after U.S. data showed a fall in new jobless benefit claims, briefly tempering broader fears about tepid U.S. economic growth.

"We traded all the way down to C$1.0201, so it's been a very strong morning, a lot just based on U.S. dollar broad-based weakness," said Camilla Sutton, chief currency strategist at Scotiabank.

"All in all it's a broadly weaker U.S. dollar day, we don't have a lot of data from Canada."

The number of Americans filing new claims for unemployment benefits fell last week by a surprisingly large 16,000 to 339,000, offering reassurance the bottom is not falling out of the labor market despite signs of slower growth.

The unexpected strength boosted risk-on sentiment, sending U.S. stock markets to a positive open. While the U.S. dollar pared some losses, it was weaker against most currencies as investors worried about a recent disappointing run of economic news from the United States, Germany and China.   Continued...