Forex News – Canadian dollar falls after rise in unemployment

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The Canadian dollar weakened sharply after Canadian employment data showed a huge decline in jobs much lower than expectations.

There was a drop of 54,000 jobs in October despite a forecast for 12,200 to be created, which was still lower than September’s 60,900 jobs.

Canada’s unemployment rate jumped to 7.3 percent from 7.1 percent, which was expected to remain unchanged.

The Canadian dollar dropped for the first time in three days, losing 0.95 percent within minutes of the data as USDCAD gapped up from 1.0100 to 1.0167 within seconds and continuing to advance to 1.0196.

A breakdown of the Statistics Canada employment report indicated that most of the jobs losses were in the full-time employment category and in the goods producing sector.

In all 71,700 full-time jobs vanished during the month — Ontario alone shed 75,400 — as part-time employment rose slightly.

Recently, the Bank of Canada warned it believed the Canadian economy was cooling quickly and would record only a 0.8 per cent growth rate in the fourth quarter, of which October is the first month.

It also said that Europe had entered a mild recession and that the U.S. was also close to falling back into a slump.