The U.S. dollar went south Friday morning but rebounded quickly as market participants took time to digest mixed employment data released on both sides of the border and forward sounding remarks from Allen Greenspan. While job growth of 15,000 was expected for Canada during the month of January, the economy actually lost close to 6000 jobs. The rate of unemployment, however, remained stable at 7.0, according to Statistics Canada. The U.S. economy added just over 145,000 new jobs in January. Although this number was disappointing to analysts who were expecting job growth of more than 190,000, the overall number of job seekers shrank, pushing the U.S jobless rate to its lowest level in almost 3 years.

In London, all eyes and ears were on Allen Greenspan. At a conference hosted by the British Treasury, Greenspan spun a positive outlook for the U.S. economy and diminished concerns over the hotly debated U.S.trade deficit that now represents almost 6 percent of the domestic gross product of the United States. Mr. Greenspan was optimistic as he applauded U.S. President George W. Bush, as it appears that he is serious with regards to economic restraint as he moves forward into his second term in office. Greenspan is expected to address members of the Group of Seven Nations this weekend where he is likely to continue his upbeat rhetoric. By 11:00 am the U.S dollar was trading at 1.2488 against the Canadian dollar.

Market Report given by Bruce Hauser, Chief of Operations,

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