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 enjoy you because of your own hard work on this website. My mother takes pleasure in engaging in research and it’s really obvious why. All of us notice all about the dynamic tactic you produce efficient suggestions by means of your web blog and in addition cause response from the others on this topic and our own simple princess is truly becoming educated so much. Take pleasure in the remaining portion of the year. You’re carrying out a superb job.
Thank you so much for giving everyone such a superb possiblity to read articles and blog posts from here. It’s usually very enjoyable and as well , stuffed with a great time for me personally and my office co-workers to visit your website at a minimum three times a week to learn the newest items you have. Of course, I’m also certainly pleased with your good tricks you serve. Selected 3 areas in this posting are without a doubt the most impressive we have all ever had.
A lot of thanks for all your effort on this web site. Gloria takes pleasure in doing research and it’s obvious why. My spouse and i know all relating to the powerful ways you present advantageous strategies through your web site and even invigorate contribution from other people on the area of interest then our simple princess is in fact being taught a lot. Enjoy the remaining portion of the new year. You are conducting a glorious job.
I would like to voice my admiration for your generosity supporting women who actually need assistance with this particular concept. Your special dedication to getting the message up and down turned out to be surprisingly interesting and have in every case empowered those just like me to arrive at their ambitions. Your own informative instruction can mean this much to me and a whole lot more to my colleagues. Thanks a lot; from each one of us.
After research just a few of the blog posts in your website now, and I really like your means of blogging. I bookmarked it to my bookmark web site listing and might be checking again soon. Pls take a look at my web site as nicely and let me know what you think.
I am just writing to let you know what a great discovery my cousin’s girl enjoyed studying your site. She came to understand a wide variety of pieces, including how it is like to possess an ideal helping style to have other folks really easily know precisely some specialized issues. You undoubtedly exceeded readers’ expected results. I appreciate you for delivering those important, trustworthy, edifying and even easy guidance on the topic to Jane.
I happen to be writing to make you know what a wonderful encounter my daughter undergone visiting your blog. She noticed a good number of details, with the inclusion of what it is like to have a very effective giving spirit to get other individuals clearly fully grasp some complicated topics. You actually exceeded my expectations. Thanks for displaying these informative, safe, edifying and in addition easy thoughts on your topic to Julie.