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Forex - USD/CAD moves higher in early trade

Published 04/07/2015, 09:27 AM
Greenback recovers from U.S. jobs data, gains ground vs. loonie
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was higher against its Canadian counterpart on Tuesday, as the greenback regained some strength after weakening broadly due to Friday's disappointing report on U.S. employment.

USD/CAD hit 1.2522 during early U.S. trade, the pair's highest since April 3; the pair subsequently consolidated at 1.2519, gaining 0.30%.

The pair was likely to find support at 1.2405, the low of March 26 and resistance at 1.2654, the high of April 2.

The dollar came under broad selling pressure on Friday after the Labor Department reported that the U.S. economy added 126,000 new jobs in March, less than half of February’s gain and the smallest increase since December 2013.

The report added to doubts over the strength of the economic recovery, prompting investors to push back expectations for a rate hike by the Federal Reserve to the end of the year from midyear.

The loonie was higher against the euro, with EUR/CAD sliding 0.42% to 1.3576.

In the euro zone, market research group Markit earlier reported that the services purchasing managers' index slipped to 54.2 last month, from 54.3 in February. Analysts had expected the index to remain unchanged.

Germany's services PMI rose to 55.4 in March from a reading of 55.3 the previous month, Markit also reported, confounding expectations for the index to remain unchanged.

However, France's services PMI fell to 52.4 last month from 52.8 in February, compared to expectations for an unchanged reading.

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