CANADA FX DEBT-C$ slides to two-week low on very weak jobs data

Fri Feb 6, 2009 8:21am EST
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* Canada Jan employment -129K, worst job loss on record

* Unemployment rate rises to 7.2 pct from 6.6 pct in Dec

* Market looks to U.S. jobs figures at 8:30 a.m. (Adds details)

By Ka Yan Ng

TORONTO, Feb 6 (Reuters) - Canada's dollar tumbled to a two-week low versus the U.S. currency on Friday after a Canadian government report showing the biggest monthly job loss ever recorded.

The Canadian dollar fell from levels around C$1.2415, or 80.55 U.S. cents, just before the release of the Statistics Canada report. It had closed at C$1.2310, or 81.23 U.S. cents, on Thursday.

At one point, the currency hit C$1.2540, or 79.74 U.S. cents, its weakest level since Jan. 23.

The market had already been on the defensive after comments from Canadian Finance Minister Jim Flaherty on Thursday afternoon, said George Davis, director and chief FX technical analyst with RBC Capital Markets.

Flaherty said the Canadian January jobs report will reveal "regrettable" jobs numbers as he predicted the country's recession will get much worse.   Continued...