Daily Afternoon Report 02.06.2016

The U.S. dollar rose against its Canadian counterpart on Thursday, as upbeat U.S. employment data lent support to the greenback and declining oil prices dampened demand for the commodity-related Canadian currency.

USD/CAD hit 1.3117 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3132, gaining 0.43%.

The pair was likely to find support at 1.2963, the low of May 27 and resistance at 1.3191, the high of May 24.

Payroll processing firm ADP said non-farm private employment rose by 173,000 last month, just below expectations for an increase of 175,000.

The economy created 166,000 jobs in April, whose figure was upwardly revised from a previously reported increase of 156,000.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 28 decreased by 1,000 to 267,000 from the previous week’s total of 268,000.

Analysts had expected jobless claims to rise by 2,000 to 270,000 last week.

Meanwhile, the Canadian dollar remained under pressure as oil prices tumbled on Thursday, after an OPEC delegate said the Organization had not reached a new supply agreement.

The loonie was lower against the euro, with EUR/CAD rising 0.35% to 1.4683.

Earlier Thursday, the European Central Bank said it was maintaining its benchmark interest rate at a record-low 0.0%, in line with market expectations.