The Canadian dollar rose sharply against its key counterparts in early New York deals on Friday, after a data showed that the nation's employment grew much higher than expectations in October.

Data from Statistics Canada showed that the employment increased by 35,000 jobs in October, following a gain of 10,000 jobs last month.

Economists had expected the employment to rise by 15,000 jobs.

Meanwhile, the unemployment rate rose 0.1 percentage points to 6.3 percent from 6.2 percent last month. The unemployment rate had been expected to remain unchanged from the last month.

Separate data from the same agency showed that Canada's merchandise trade deficit for September was unchanged from the previous month.

The deficit totaled C$3.18 billion, slightly higher than forecasts for C$3 billion shortfall.

Exports were down 0.3 percent on lower passenger car and light truck exports, while imports decreased 0.3 percent on lower prices.

Oil prices are higher, underpinned by hopes that oil producing nations are likely to extend their production cut agreement that expires in March 2018.

Crude for December delivery rose $0.20 to $54.74 per barrel.

The currency has been trading higher in the European session.

The loonie firmed to 1.2715 against the greenback, its strongest since October 25. On the upside, 1.26 is possibly seen as the next resistance for the loonie.

Official data showed that the U.S. economy added 261,000 jobs in October as employment rebounded from a lull in the prior month due to hurricanes Harvey and Irma.

Employment was expected to jump by 312,000 jobs in October after unexpectedly generating only 18,000 jobs in September. The September number was upwardly revised from the loss of 33,000 jobs initially reported.

The loonie that finished Thursday's deals at 1.4932 against the euro advanced to an 11-day high of 1.4825. Further uptrend may take the loonie to a resistance around the 1.47 mark.

The loonie climbed to a 9-day high of 89.62 against the yen, from a low of 88.75 hit at 8:30 am ET. Continuation of the loonie's uptrend may see it challenging resistance around the 91.00 level.

Having fallen to 0.9885 against the aussie at 6:00 pm ET, the loonie reversed direction and approached a 9-day high of 0.9764. The next possible resistance for the loonie is seen around the 0.96 region.

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