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Forex - USD/CAD jumps after U.S., Canada jobs reports

Published 03/07/2014, 09:08 AM
Greenback gains ground vs. loonie after data
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Investing.com - The U.S. dollar jumped against its Canadian counterpart on Friday, supported by the release of strong U.S. nonfarm payrolls data, while a disappointing Canadian employment report dampened demand for the loonie.

USD/CAD hit 1.1097 during European afternoon trade, the pair's highest since March 5; the pair subsequently consolidated at 1.1083, climbing 0.92%.

The pair was likely to find support at 1.0956, Thursday's low and resistance at 1.1147, the high of February 28.

The U.S. Bureau of Labor Statistics said the economy added 175,000 jobs in February, compared to expectations for a 149,000 increase. January's figure was revised up to a 129,000 gain from a previously estimated 113,000 rise.

The U.S. private sector added 162,000 jobs last month, exceeding expectations for a 154,000 rise. January's figure was revised up to a 145,000 increase from a previously estimated 142,000 gain.

The report also showed that the U.S. unemployment rate ticked up to 6.7% in February, from 6.6% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Meanwhile, data also showed that the U.S. trade deficit expanded to $39.1 billion in January, from $38.98 billion in December, whose figure was revised from a previously estimated deficit of $38.7 billion.

Analysts had expected the trade deficit to expand to $39.00 billion in January.

Elsewhere, Statistics Canada said the economy lost 7,000 jobs last month, compared to expectations for a 15,000 rise, after a 29,400 increase in January.

Canada's unemployment rate remained unchanged at 7.0% in February, in line with expectations.

A separate report showed that Canada's trade deficit narrowed to C$0.18 billion in January, from C$0.92 billion in December, whose figure was revised from a previously estimated deficit of C$1.66 billion.

Analysts had expected the trade deficit to expand to C$1.60 billion in January.

The loonie was also lower against the euro, with EUR/CAD advancing 0.91% to 1.5360.

In the euro zone, official data earlier showed that German industrial production rose 0.8% in January, more than the expected 0.7% increase. Industrial production in December was revised up to a 0.1% gain from a previously estimated 0.6% fall.

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