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Forex - USD/CAD drops to 2-1/2 week lows on Canadian, U.S. data

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Investing.com -

Investing.com - The U.S. dollar dropped to two-and-a-half week lows against its Canadian counterpart on Friday, as positive employment data from Canada lent support to the loonie, while a disappointing manufacturing report from the U.S. weighed on demand for the greenback.

USD/CAD hit 1.0871 during European afternoon trade, the pair's lowest since July 30; the pair subsequently consolidated at 1.0880, shedding 0.21%.

The pair was likely to find support at 1.0850, the low of July 30 and resistance at 1.0921, Thursday's high.

In a revised report, Statistics Canada said that the economy added 41,700 jobs last month, beating expectations for an increase of 20,000 and after a 9,400 decline in June.

Canada's statistics agency had announced Tuesday that an error in the previous week's employment report had come to light and a review had been launched. Last Friday, Statistics Canada had reported that the economy had added only 200 jobs in July.

Canada's unemployment rate still remained at 7.0% for July, in line with market expectations and down from 7.1% in June.

A separate report showed that manufacturing sales in Canada rose 0.6% in June, compared to expectations for a 0.5% gain. May's figure was revised to a 1.7% increase from a previously estimated 1.6% rise.

In the U.S., the New York Federal Reserve said that its Empire State manufacturing index fell to a four-month low of 14.7 this month, from a reading of 25.6 in July, confounding expectations for a decline to 20.0.

Data also showed that U.S. producer price inflation rose 0.1% last month, in line with expectations, after a 0.4% increase in June.

Core producer price inflation, which excludes food, energy and trade, rose 0.2% in July, in line with market projections, and after a 0.2% gain the previous month.

The loonie was little changed against the euro, with EUR/CAD dipping 0.05% to 1.4562.

Later in the day, the U.S. was to release a report on industrial output, as well as preliminary data on consumer sentiment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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