Daily Afternoon Report 03.02.2017
The U.S. dollar pared gains against its Canadian counterpart on Friday, after the release of mixed U.S. employment data and as higher oil prices lent support to the commodity-related Canadian currency.
USD/CAD pulled away from 1.3075, the pair’s highest since Wednesday, to hit 1.3037 during early U.S. trade, still up 0.08%.
The pair was likely to find support at 1.2977, Thursday’s low and resistance at 1.3103, Wednesday’s high.
The U.S. Department of Labor said the economy added 227,000 jobs in January, exceeding expectations for an increase of 175,000. The economy added 157,000 jobs in December, whose figure was revised from a previously estimated gain of 156,000.
However, the report also showed that the U.S. unemployment rate ticked up to 4.8% last month from 4.7% in December. Analysts had expected for an unchanged reading in January.
Data also showed that U.S. average hourly earnings rose 0.1% in January, disappointing expectations for an increase of 0.3%.
Sentiment on the greenback has been under pressure in recent weeks as U.S. President Donald Trump’s protectionist policies and immigration bans spur uncertainty in global markets.
Meanwhile, the Canadian dollar remained supported by strong oil prices, as threats of new sanctions on Iran by the U.S. administration fueled concerns over fresh geopolitical tensions between the two countries.
The loonie was higher against the euro, with EUR/CAD easing up 0.09% to 1.3036.