Canadian Dollar Lower Despite Encouraging Employment News

The Canadian economy created 24,700 new jobs in May – this is almost double the predictions and marks the fifth straight month of increases. Despite the new jobs, the overall unemployment rate remained at 8.1 percent.

Worries over the worsening debt crisis in Europe however, outweighed the positive news, causing the Canadian dollar to fall 95.47 US cents from 96.35 just before the release of the employment results.

“Everybody’s completely ignoring the fantastic news we had from the employment numbers and concentrating on the bigger picture, which looks like more woes for the debt situation in Europe,” said Steve Butler, director of foreign exchange trading at Scotia Capital.

Source: Reuters

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