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Forex - USD/CAD higher after U.S., Canadian jobs data beat expectations

Published 02/06/2015, 09:26 AM
Greenback rises against loonie after strong U.S., Canadian employment reports
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Investing.com - The U.S. dollar was higher against its Canadian counterpart on Friday, after upbeat U.S. employment data boosted demand for the greenback, while an equally positive Canadian jobs report lent support to the local currency.

USD/CAD hit 1.2501 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2471, rising 0.31%.

The pair was likely to find support at 1.2351, the low of February 3 and resistance at 1.2587, Thursday's high.

In a report, the Labor Department said the U.S. economy added 257,000 jobs in January, beating expectations for an increase of 234,000. December's figure was revised to a 329,000 gain from a previously estimated 252,000 rise.

The report also showed that the U.S. unemployment rate ticked up to 5.7% last month, from 5.6% in December. Analysts had expected the unemployment rate to remain unchanged in January.

In addition, data showed that U.S. average hourly earnings rose 0.5% in January, exceeding expectations for a 0.3% gain, after a 0.2% fall the previous month.

Meanwhile, Statistics Canada reported that 35,400 jobs were created last month, compared to expectations for a 5,000 gain. December's figure was revised to a 102,100 decline from a previously estimated 4,300 fall.

Canada's unemployment rate fell to 6.6% in January from 6.7% the previous month, the report showed, compared to expectations for the index to remain unchanged.

Data also showed that Canadian building permits 7.7% in December, more than the expected 5.0% increase. November's figure was revised to a 13.6% drop from a previously estimated 13.8% decline.

The loonie was higher against the euro, with EUR/CAD retreating 0.89% to 1.4142.

Sentiment on the euro remained vulnerable as investors continued to focus on developments in Greece, after German Finance Minister Wolfgang Schauble said on Thursday that Greece's financial difficulties were the result of domestic problems, but that Germany would do all in its power to help.

Schauble was speaking at a joint press conference with his Greek counterpart Yanis Varoufakis in Berlin on Thursday.

Earlier Friday, official data showed that German industrial production rose 0.1% in December, disappointing expectations for a 0.4% gain. November's figure was revised to a 0.1% uptick from a previously estimated 0.1% fall.

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