Daily Afternoon Report 05.02.2018

The U.S. dollar rose to a nearly two-week high against its Canadian counterpart on Monday, as Friday’s upbeat U.S. employment report continued to lend support to the greenback, while declining oil prices weighed on the commodity-related Canadian currency.

USDCAD was at 1.2485, the highest since January 23.

The greenback remained supported after the U.S. Department of Labor reported on Friday that the economy added 200,000 jobs in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at 4.1% this month, in line with expectations.

The report also showed that average hourly earnings rose 0.3% in January, as expected.

The strong wage growth data fuelled inflation expectations, and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.

Meanwhile, the Canadian dollar was pressured lower by declining in Crude Oil WTI Futures on Monday, amid fresh concerns over U.S. crude production levels.

The loonie was little changed against the euro, with EURCAD at 1.5480.