Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Thursday, after stronger-than-expected U.S. employment data, but concerns over the euro zone’s financial crisis continued to support safe haven demand.
USD/CAD pulled back from 1.0198, the pair’s highest since December 2, to hit 1.0172 during early U.S. trade, still up 0.46% on the day.
The pair was likely to find support at 1.0102, Wednesday’s low and resistance at 1.0209, the high of January 2.
The Canadian dollar found support after U.S. payroll processing firm ADP said non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by a seasonally adjusted 325,000, blowing past expectations for an increase of 175,000.
The previous month’s figure was revised up to a gain of 204,000 from a previously reported increase of 206,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Safe haven demand was bolstered earlier as concerns over the health of the euro zone banking sector intensified after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds earlier, in an auction which met with solid demand at higher yields.
The Canadian dollar was higher against the euro, with EUR/CAD shedding 0.57% to hit 1.3028.
Also Thursday, data showed that Canada’s industrial product price index rose in line with expectations, while the raw materials price index rose more-than-expected in December, on the back of higher petroleum prices.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.
USD/CAD pulled back from 1.0198, the pair’s highest since December 2, to hit 1.0172 during early U.S. trade, still up 0.46% on the day.
The pair was likely to find support at 1.0102, Wednesday’s low and resistance at 1.0209, the high of January 2.
The Canadian dollar found support after U.S. payroll processing firm ADP said non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by a seasonally adjusted 325,000, blowing past expectations for an increase of 175,000.
The previous month’s figure was revised up to a gain of 204,000 from a previously reported increase of 206,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Safe haven demand was bolstered earlier as concerns over the health of the euro zone banking sector intensified after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds earlier, in an auction which met with solid demand at higher yields.
The Canadian dollar was higher against the euro, with EUR/CAD shedding 0.57% to hit 1.3028.
Also Thursday, data showed that Canada’s industrial product price index rose in line with expectations, while the raw materials price index rose more-than-expected in December, on the back of higher petroleum prices.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.