Investing.com - The U.S. dollar slid lower against the Canadian dollar on Monday, retreating from the six month highs hit following Friday’s stronger-than-expected U.S. jobs report for September as investors locked in profits.
USD/CAD was down 0.27% to 1.1218, off Friday’s highs of 1.1269.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.25% to 86.57, off Friday’s four-year peaks of 86.79.
It notched up its twelfth consecutive weekly gain last week, the longest rally since the index was created in 1971.
The greenback strengthened across the board on Friday after the Labor Department reported that the U.S. economy added 248,000 jobs in September, well ahead of forecasts for jobs growth of 215,000.
The unemployment rate ticked down to 5.9%, the lowest level since July 2008.
The robust data reinforced expectations that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner. The central bank is on track to end its asset purchase program later this month.
The Canadian dollar remained under pressure after on data on Friday showed that the country unexpectedly posted a trade deficit in August, as imports rose by the most in nearly two years, while exports slowed.
Statistics Canada said imports rose 3.9% in August, while exports decreased 2.5%. As a result, Canada's trade balance went from a surplus of C$2.2 billion in July to a deficit of C$610 million in August.
The weak data fuelled concerns over the outlook for economic growth in the third quarter.
Elsewhere, the loonie, as the Canadian dollar is also known, was steady against the euro, with EUR/CAD at 1.4073.
In the euro zone, data on Monday showed that German factory orders fell 5.7% in August, compared to expectations for a 2.5% decline. It was the largest drop since early 2009, adding to concerns over the outlook for the euro zone’s largest economy.