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Forex - USD/CAD near 2-week highs after U.S., Canadian jobs data

Published 07/08/2016, 09:30 AM
© Reuters.  Greenback rises against loonie in early trade
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Investing.com - The U.S. dollar rose to nearly two-week highs against its Canadian counterpart on Friday, as an upbeat U.S. employment report boosted demand for the greenback, while more disappointing Canadian jobs data weighed on the local currency.

USD/CAD hit 1.3079 during early U.S. trade, the pair’s highest since June 28; the pair subsequently consolidated at 1.3025, adding 0.17%.

The pair was likely to find support at 1.2877, Thursday’s low and resistance at 1.3120, the high of June 27.

The U.S. Department of Labor said the economy added 287,000 jobs in June, compared to expectations for a 175,000. The number of jobs created increased by 11,000 in May, whose figure was revised from a previously estimated gain of 38,000.

The report also showed that the unemployment rate ticked up to 4.9% last month from 4.7% in May, compared to expectations for a rise to 4.8%.

Meanwhile, average hourly earnings rose 0.1% last month, disappointing expectations for a 0.2% gain and after a 0.2% increase in May.

The report came a day after data showed that the number of individuals filing for initial jobless benefits in the week ending July 2 declined expectedly, while payroll processing firm ADP said non-farm private employment rose more than expected last month.

In Canada, official data showed that the number of employed people in Canada fell by 700 in June, confounding expectations for an increase of 5,000 and after a 13,800 climb the previous month.

Canada’s unemployment rate ticked down to 6.8% last month from 6.9% in May, beating expectations for a rise to 7.0%.

The loonie was lower against the euro, with EUR/CAD rising 0.23% to 1.4417.

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