The Canadian dollar on Friday dropped to its week-low against the U.S. dollar after the nation released underwhelming job-creation data, Bloomberg reports.
Concerns are growing about the strength of the world's 11th-largest economy. Canada also is a top trade and commerce partner with the U.S. and it might be enduring a rough patch during the recovery from the Great Recession. Its jobs report indicated that the unemployment rate remains at 7.2 percent.
"Initially the market sells Canada on that news, but because it takes a few seconds, minutes, to digest, then they get into the details," foreign-exchange sales executive director Don Mikolich with Canadian Imperial Bank of Commerce told the news source on Friday. "Next your eyes go to unemployment and full-time, part-time, and when you look at that, it's not actually as bad as the headline would suggest. So I think at that point people probably reverse course a little bit."
In April, the Bank of Canada reduced its full-year growth prospect to 1.5 percent from 2 percent.
The Canadian job market grew in April by 12,500 jobs but the unemployment rate remaining the same is of concern, according to Reuters.
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