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Forex - Greenback rises vs. loonie after U.S. jobs data

Published 03/02/2016, 09:28 AM
© Reuters.  Greenback gains ground vs. loonie, U.S. data supports
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Wednesday, boosted by the release of upbeat U.S. employment data, although stronger oil prices continued to support demand for the commodity-related Canadian currency.

USD/CAD hit 1.3470 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3487, gaining 0.59%.

The pair was likely to find support at 1.3382, Tuesday’s low and a nearly three-month low and resistance at 1.3553, Tuesday’s high.

The greenback remained supported after payroll processing firm ADP said non-farm private employment rose by 214,000 last month, surpassing expectations for an increase of 190,000.

The economy created 193,000 jobs in January, whose figure was downwardly revised from a previously reported increase of 205,000.

The data came after a string of upbeat U.S. economic reports, adding to expectations for the Federal Reserve to hike interest rates again this year.

Oil prices slipped lower on Wednesday but remained supported above $34 a barrel amid hopes for a reduction cut by the world’s biggest oil producers, lending some support to the Canadian dollar.

The loonie was lower against the euro, with EUR/CAD rising 0.29% to 1.4614.

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