U.S. Dollar Falls to new 13-month Trough Versus Canadian Dollar

By: Barbara Zigah

The Canadian Dollar struck a new 13-week peak versus the U.S. Dollar in early New York trading in advance of critical North American jobs reports to be released tomorrow by the U.S. and Canadian Labor Departments. As reported at 8:30 a.m. (EST), the Canadian Dollar was trading against the greenback at CAD1.0121, as compared to yesterday’s close of CAD1.0176. Overnight, the Canadian Dollar struck the highest trade since mid-May, and analysts attribute the Canadian Dollar’s rise to improved investor sentiment.

On Wednesday, an ADP report indicated that there were some 42,000 jobs added last month in the United States, and coupled with better than expected data from the U.S. services sector, investor fears over the pace of the U.S. recovery were somewhat allayed.  Forecasters predict that the private sector payroll from the United States should see a modest rise, with the unemployment rate climbing from 9.5% to 9.6%. As regards the Canadian labor situation, forecasters predict that 15,000 jobs will be added, with the unemployment rate remaining steady at 7.9%.