Loonie Extends Rally After Upbeat Canadian Jobs Data
March 10 2017 - 4:44AM
RTTF2
The Canadian dollar continued to be higher against its major
rivals in the European session on Friday, after the economy
unexpectedly created jobs in February, while the jobless rate
declined.
Data from Statistics Canada showed that the employment increased
by 15,300 jobs in February after jumping by 48,300 jobs in January.
The figure came as a surprise to economists, who had forecast the
jobs to fall by 5,000.
The jobless rate declined to 6.6 percent from 6.8 percent in
January. Economists were looking for the jobless rate to remain
unchanged for the month.
Oil prices inched up, after suffering steep losses overnight,
with investors awaiting the weekly rig count data in the U.S.
Crude for April delivery rose $0.37 to $49.65 per barrel.
The loonie was trading mixed in the Asian session. While the
loonie held steady against the greenback and the euro, it rose
against the yen. Against the aussie, the loonie declined.
The loonie firmed to 85.90 against the Japanese yen, its
strongest since February 24. On the upside, 87.00 is possibly seen
as the next resistance level for the loonie-yen pair.
Data the Ministry of Finance showed that Japan's large
manufacturing conditions deteriorated in the first quarter of 2017,
with a score of 1.1.
That was down sharply from 7.5 in the previous three months, and
well shy of expectations for 8.4.
Continuing early rally, the loonie spiked up to a 2-day high of
1.3421 against the greenback. Continuation of the loonie's uptrend
may see it challenging resistance around the 1.33 region.
Data from the Labor Department showed a stronger than expected
job growth in the month of February.
The Labor Department said non-farm payroll employment jumped by
235,000 jobs in February after surging up by a revised 238,000 jobs
in January.
The loonie reversed from an early session's high of 1.4335
against the euro and climbed to 1.4273. The next possible
resistance for the loonie is seen around the 1.39 level.
Data from Destatis showed that Germany's wholesale prices
increased the most in more than five years in February.
Wholesale prices advanced 5 percent in February from prior year,
following a 4 percent increase in January.
The loonie rose back to 1.0131 against the aussie, off its early
low of 1.0168. The loonie is seen finding resistance around the
1.00 area.
Looking ahead, U.S. Baker Hughes rig count data is set to be
announced in the New York session.
At 2:00 pm ET, U.S. Federal Reserve monthly budget balance
statement is due.
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