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Forex - USD/CAD extends gains after strong U.S. jobs report

Published 01/20/2011, 09:08 AM
USD/CAD
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EUR/CAD
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Investing.com – The U.S. dollar extended gains against its Canadian counterpart on Thursday, advancing to a fresh nine day high after official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected.

USD/CAD hit 1.0012 during European afternoon trade, the pair’s highest since January 7; the pair subsequently consolidated at 1.0007, gaining 0.55%.

The pair was likely to find support at 0.9888, Wednesday’s low and resistance at 1.0022, the high of January 5.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 15 fell to a seasonally adjusted 404K, after rising to a revised 441K the previous week and beating expectations for a drop to 425K.

Meanwhile, Statistics Canada reported that wholesale sales rose by 1.2% in November, after rising by a revised 0.3% the previous month. Analysts had expected wholesale sales to rise by 0.4% in November.

The loonie was also down against the euro, with EUR/CAD rising 0.26% to hit 1.3449.

Later in the day, the U.S. was to publish official data on existing home sales and a report on manufacturing activity in Philadelphia.

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