A loss of 54,000 jobs in October drove the Canadian unemployment rate to 7.3 percent and has resulted in a loss of more than a cent to the U.S. dollar on early morning trading in Toronto. The loonie tumbled 1.15 cents to 98.05 cents US as traders also took in weak U.S. employment data for October.
“It is too early to draw a direct link to the volatility in global financial markets as the European sovereign debt crisis rages on,” said RBC assistant chief economist Dawn Desjardins. “To be sure, additional declines in November and December would suggest that Canadian companies are feeling the pinch from falling export demand and are reacting to the uncertainty generated from outside Canada’s borders.”
Source: The Canadian Press
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