US dollar advanced to 22-month highs versus its Canadian counterpart on Friday, following the release of upbeat US employment data and mediocre Canadian jobs data.
USD/CAD jumped to a session high and highest point since October 4th 2011 at 1.0611 at 12:36 GMT, after which consolidation followed at 1.0577. The pair was up by 0.59% for the day. Support was likely to be received at current session low, 1.0509, while resistance was to be encountered at October 4th 2011 high, 1.0549.
Earlier today official report stated that the number of jobs in Canada decreased by 400 for the first time in three months in June on a monthly basis, beating expectations of a larger decrease, by 7 500, while in May economy added 95 000 job positions, the second largest increase on record. The report stated that in June full-time job positions marked the largest decline of all. During the first half of this year, the average number of jobs per month was 14 000, as this was almost 50% less in comparison with the average number, estimated during the second half of 2012, 27 000. Nevertheless, this data matched the more moderate forecasts, regarding Canadian economic growth, thus probably urging the central bank of the country to abstain from altering the course of its monetary policy by the end of the year.
Additionally, Unemployment rate in Canada remained stable at 7.1% in June, unchanged from the preceding month and meeting preliminary estimates.
Meanwhile, the Bureau of Labor Statistics in the United States reported, that US economy managed to add 195 000 new job positions in June, significantly above the expected number of 165 000, while in May another 195 000 jobs were added, according to revised data. On the other hand, Unemployment Rate in the United States remained unchanged at 7.6% in June, compared to May, while experts had projected a decrease to 7.5%. Last but not least, the average hourly earnings in the country marked a 0.4% increase in June, improving in comparison with the 0.1% climb a month ago. Experts estimates were also exceeded, as they had shown a rise by 0.2%.
Elsewhere, Canadian dollar advanced against the euro, as EUR/CAD pair dropped by 0.10% to 1.3568.
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