The Canadian dollar slumped to its lowest level in more than two weeks against the US dollar on Friday after soft domestic employment data and anxiety over Europe's debt crisis outweighed the positive implications of an impressive US jobs report.
Most of the details in the Canadian employment survey disappointed. The economy added 17,500 jobs in December, but the jobless rate rose and the new positions were all part-time, further evidence the post-recession hiring surge has ended even as US jobs growth finally picks up the pace.
Canada outperformed the United States both during and after the global financial crisis, recovering all of the jobs it lost in the recession. But the reports on Friday suggest that relative strength could be waning. "Canada is somewhat out of step with the rest of the world and that still seems to be the case after today's report ... maybe we're a victim of our own success," said Sheryl King, head of Canadian economics at Bank of America-Merrill Lynch.
The Canadian dollar ended the North American session at C$1.0270 to the US dollar, or 97.37 US cents, down from Thursday's North American finish at C$1.0191 against the US dollar, or 98.13 US cents. The currency ended the first week of 2012 down 1 percent. Weak US and Canadian equity markets and a plunging euro didn't help sentiment for Canada's cyclical currency, as investors continued to worry about funding for European governments and banks.
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