Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - USD/CAD tumbles to more than 2-year lows on weak U.S. data

Published 09/01/2017, 09:30 AM
© Reuters.  Broadly weaker greenback hits more than 2-year trough against loonie
USD/CAD
-
EUR/CAD
-
CL
-

Investing.com - The U.S. dollar tumbled to a more than two-year low against its Canadian counterpart on Friday, as the release of disappointing U.S. employment data weighed heavily on the greenback.

USD/CAD was down 0.76% at 1.2390 by 09.30 a.m. ET (13:30 GMT), the pair's lowest since June 2015.

The greenback weakened broadly after the U.S. Labor Department said the economy added 156,000 jobs in August, disappointing expectations for an increase of 179,000. The unemployment rate ticked up to 4.4% this month from 4.3% in July, confounding expectations for an unchanged reading.

The report also showed that average hourly earnings only rose 0.1% in August, compared to expectations for a 0.2% gain.

The weak data came after a string of mixed U.S. economic reports on Thursday had already dampened optimism over the economy. It was also expected to lower chances of another rate hike by the Federal Reserve in December.

Meanwhile, the Canadian dollar still benefited from the previous session's data showing that the country's economy grew at the fastest pace in nearly six years in the second quarter.

However, the loonie's gains were capped, as oil prices continued to be pressured lower by refinery shut downs in the Gulf Coast.

According to company reports, record flooding in Texas caused by hurricane Harvey has paralyzed at least 4.4 million barrels per day of refining capacity.

The loonie was higher against the euro, with EUR/CAD declining 0.87% to 1.4743.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.