Friday, the Canadian dollar edged higher after exhibiting steep losses in the previous session as crude oil recouped its early morning losses amid a firm employment report in the U.S.
Although the price of crude oil was extending losses in the morning amid risk aversion on global growth concerns, it trimmed losses following the better-than expected employment report from the U.S. Light Sweet Crude Oil (WTI) futures for September delivery is presently trading at $87.38 per barrel, up $0.75 a barrel.
Yesterday, oil plunged more than $5 to below $87 a barrel on concerns about the faltering U.S. economic recovery coupled with a strong dollar pulled.
The U.S. Economy added 117,000 jobs in July, a more robust figure than most economists had predicted, according to figures released Friday by the Labor Department.
The job growth was entirely in the private sector, with new 154,000 private sector jobs offsetting a decline of 37,000 government positions lost.
Furthermore, the unemployment rate, measured by a different survey than job growth, ticked down slightly to 9.1 percent, while most economists had expected it to hold level at 9.2 percent.
Canada’s economy also added jobs for a fourth straight month in July, helping the unemployment rate ease to a two-year low of 7.2 percent, official data showed today.
However, most of the 0.2 drop in unemployment was a result of fewer people participating in the labor market. Employment rose by only 7,100 on a seasonally adjusted basis, according to the latest figures from Statistics Canada. More than 28,000 jobs were created the month before.
The Canadian dollar that fell to a 2-day low of 79.71 against the Japanese yen in the Asian session moved in a sideways pattern in the succeeding trading hours. The loonie-yen pair inched higher to 80.96 around 8:30 am ET with 78.70 seen as the next likely support level and 82.70 as the probable resistance.
Japanese leading index improved for the second consecutive month in June, the preliminary estimate from the Cabinet Office showed today. The leading index came in at 103.2 in June, up from 99.4 in May. But it stayed slightly below the expected reading of 103.4.
At the same time, the coincident index rose to 108.6 from 106.1. The consensus forecast called for a reading of 108.7. Meanwhile, the lagging index dipped to 90.1 from 90.4 in May.
The Canadian dollar advanced to 1.3833 against the euro around 8:45 am ET, up from a 1-month low of 1.3933 hit in the Asian session. On the upside, the loonie may find target around the 1.3810 level in near-term.
German industrial production dropped unexpectedly in June, the report released by the Federal Ministry of Economy and Technology showed today. Industrial output decreased 1.1 percent month-on-month in June, reversing last month’s 0.9 percent rise. Economists were looking for a monthly 0.1 percent growth.
The Canadian dollar also erased losses against its US counterpart following the non-farm payrolls data, moving off a fresh 5-week low of 0.9838 to reach as high as 0.9759 around 8:30 am ET. If the loonie strengthens further, it may find target around the 0.9710 level.
Looking ahead, the U.S. Federal Reserve is expected to release its monthly consumer credit report at 3 pm ET. Consumer credit for June is likely to show an increase of $5 billion following a $5.08 billion or 2.5 percent increase in May.
I just wanted to write a quick remark so as to express gratitude to you for some of the magnificent recommendations you are posting at this website. My rather long internet search has at the end of the day been recognized with extremely good facts and techniques to talk about with my great friends. I would declare that most of us site visitors actually are undeniably endowed to exist in a notable network with so many lovely professionals with valuable tactics. I feel pretty privileged to have used your entire site and look forward to plenty of more amazing minutes reading here. Thank you once again for a lot of things.
I have to voice my love for your kind-heartedness in support of those people who must have assistance with this particular concept. Your real commitment to passing the solution across ended up being particularly helpful and have really helped individuals much like me to get to their desired goals. Your new useful key points signifies a great deal to me and much more to my office colleagues. With thanks; from everyone of us.
I just wanted to post a quick message to express gratitude to you for some of the amazing items you are sharing on this site. My extensive internet look up has at the end been compensated with professional know-how to go over with my best friends. I ‘d repeat that many of us website visitors are very blessed to dwell in a notable place with very many perfect individuals with very beneficial plans. I feel very privileged to have encountered your web site and look forward to some more enjoyable moments reading here. Thanks a lot once more for everything.
I truly wanted to compose a small remark to thank you for these awesome advice you are showing on this website. My time intensive internet look up has at the end of the day been recognized with extremely good knowledge to talk about with my company. I ‘d admit that we website visitors actually are truly lucky to live in a wonderful place with very many brilliant individuals with beneficial tricks. I feel somewhat grateful to have seen the web pages and look forward to some more fun moments reading here. Thank you once again for all the details.
My wife and i ended up being very happy Edward managed to round up his investigation from your ideas he came across when using the web site. It is now and again perplexing just to happen to be giving away techniques other people could have been selling. So we acknowledge we have the writer to give thanks to for this. All of the illustrations you have made, the easy blog menu, the friendships you help to instill – it’s got everything excellent, and it is letting our son in addition to the family consider that that matter is satisfying, which is certainly very essential. Many thanks for everything!
I want to express my passion for your kind-heartedness in support of men and women who need guidance on the question. Your very own dedication to passing the solution up and down appears to be extremely important and has truly permitted women just like me to achieve their aims. The valuable hints and tips implies this much a person like me and even more to my mates. Warm regards; from each one of us.
I truly wanted to write a quick comment to express gratitude to you for all the marvelous items you are showing on this site. My considerable internet look up has at the end been recognized with beneficial facts and strategies to share with my colleagues. I would suppose that most of us site visitors actually are definitely fortunate to be in a great network with so many awesome individuals with interesting methods. I feel very much happy to have come across your entire site and look forward to plenty of more enjoyable moments reading here. Thanks a lot again for a lot of things.
You made some first rate points there. I regarded on the internet for the difficulty and found most people will associate with with your website.
Thank you a lot for giving everyone an extraordinarily wonderful chance to check tips from this blog. It can be very pleasant and as well , packed with amusement for me personally and my office friends to search your web site a minimum of 3 times weekly to learn the latest stuff you have got. Of course, I’m also actually satisfied with your stunning hints served by you. Selected 3 ideas in this posting are honestly the most beneficial we have ever had.
I and also my guys have already been examining the great points on the blog then the sudden I got a horrible suspicion I never thanked the web site owner for them. The men became for this reason thrilled to study them and now have really been enjoying those things. We appreciate you really being really accommodating and then for making a decision on variety of decent areas millions of individuals are really desperate to understand about. Our honest regret for not saying thanks to earlier.