Canadian Dollar Climbs On Solid Jobs Data

Canadian Dollar Climbs On Solid Jobs Data

The Canadian dollar advanced against its major counterparts in the European session on Friday, as the nation’s job growth improved in August, albeit at a softer pace than forecasts, and the jobless rate fell to the lowest level since February 2020.

Data from Statistics Canada showed that the economy added 90,200 jobs in August, after a gain of 94,000 jobs in July. Economists had expected employment to rise by 100,000 jobs.

The unemployment rate fell to 7.1 percent in August from 7.5 percent in July. The rate was forecast to fall to 7.3 percent.

Oil prices rose on signs of tightening supply due to the impact of Hurricane Ida in the Gulf of Mexico.

Trade worries eased following talks between U.S. President Joe Biden and his Chinese counterpart Xi Jinping, helping lift sentiment.

Extending early rally, the loonie hit a 3-day high of 1.4883 against the euro. On the upside, 1.46 is possibly seen as its next resistance level.

The loonie appreciated to 3-day highs of 1.2583 against the greenback and 0.9314 against the aussie, up from its previous lows of 1.2673 and 0.9344, respectively. The loonie is seen finding resistance around 1.22 against the greenback and 0.92 against the aussie.

The loonie rose to a 2-day high of 87.31 against yen, from a low of 86.55 seen at 5 pm ET. Immediate resistance awaits near the 90.00 region.