Daily Afternoon Report 11.07.2016

The U.S. dollar edged up close to two-week highs against its Canadian counterpart on Monday, as Friday’s upbeat U.S. employment data continued to lend support to the greenback.

USD/CAD hit 1.3096 during early U.S. trade, the pair’s highest since June 28; the pair subsequently consolidated at 1.3065, adding 0.18%.

The pair was likely to find support at 1.2984, the low of July 8 and resistance at 1.3120, the high of June 27.

The Labor Department reported on Friday that the U.S. economy added 287,000 jobs last month, well above the 175,000 jobs forecast by economists. Average hourly earnings were up 2.6% compared with a year earlier.

The report also showed that the unemployment rate ticked up to 4.9% and May’s payrolls figure was revised down to 11,000 from a previously reported 38,000, the smallest monthly increase since 2010.

The strong jobs report was seen as unlikely to alter the Federal Reserve’s cautious plans for raising interest rates.

The Canadian dollar found some support however as oil prices erased earlier losses posted amid signs of an ongoing recovery in U.S. drilling activity.

The loonie was lower against the euro, with EUR/CAD rising 0.35% to 1.4466.