Loonie Strengthens After Upbeat Canada Jobs Data
November 03 2017 - 5:34AM
RTTF2
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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