Forex - USD/CAD gains on both U.S., Canadian jobs reports
Published Nov 08, 2013 01:38PM ET
In U.S. trading on Friday, USD/CAD hit 1.0488, up 0.29%, up from a low of 1.0446 and off a high of 1.0502.
The pair sought to test support at 1.0406, Thursday's low, and resistance at 1.0560, the high from Sept. 3.
The Bureau of Labor Statistics reported earlier that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.
The August figure was revised to 238,000 from 193,000, while the September figure was revised
to 163,000 from 148,000.
The U.S. unemployment rate ticked up to 7.3% last month from 7.2% in September, in line with expectations.
The figures fueled market sentiments that the Federal Reserve may announce plans to scale back its USD85 billion in monthly asset purchases possibly as soon as December.
Asset purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process, and talk of their dismantling strengthens the U.S. currency.
The better-than-expected October jobs report came a day after official data showed that the U.S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth.
Capping the dollar's advance somewhat, however, was the Thomson Reuters/University of Michigan's preliminary consumer sentiment index for November, which ticked down to 72.0 from 73.2 in October, disappointing expectations for a rise to 74.5.
Meanwhile in Canada, official data showed that the Canadian economy added 13,200 jobs in October, disappointing expectations for a 14,000 increase after a 11,900 rise the previous month.
Canada's unemployment rate remained unchanged at 6.9% last month, confounding expectations for an uptick to 7.0%.
The Canadian dollar, meanwhile, was up against the euro and up against the yen, with EUR/CAD down 0.16% and trading at 1.4014 and CAD/JPY up 0.65% at 94.41.
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Written By: Investing.com
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