Daily Afternoon Report 11.03.2016

The U.S. dollar fell near four-month lows against its Canadian counterpart on Friday, despite the release of downbeat Canadian jobs data, as rising oil prices continued to support demand for the Canadian currency.

Statistics Canada said the number of employed people declined by 2,300 in February, compared to expectations for a 9,000 increase and after a 5,700 drop the previous month.

The report also showed that Canada’s unemployment rate ticked up to a three-year high of 7.3% last month from 7.2% in January. Analysts had expected the unemployment rate to remain unchanged in February.

The Canadian dollar remained supported, however, as oil prices continued to rise and were hovering at three-month highs above $38 a barrel.

The euro found some support after ECB President Draghi said on Thursday that the central bank did not anticipate that it will be necessary to reduce interest rates further, but added that this could change.

But the single currency remained under pressure as the ECB cut its benchmark interest rate to a record-low of zero from 0.05%. Market watchers had been expecting no change.

The central bank also cut the deposit facility rate deeper into negative territory, to minus 0.4%, and cut the marginal lending rate cut to 0.25% from 0.30%.

In addition, the ECB boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April.