Forex - USD/CAD edges lower after U.S., Canadian job reports

Shutterstock photo - The U.S. dollar edged lower against its Canadian counterpart on Friday, after the release of encouraging Canadian and U.S. employment reports, although U.S. debt concerns persisted.

USD/CAD hit 0.9871 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9863, edging down 0.15%.

The pair was likely to find support at 0.9837, the low of January 2 and resistance at 0.9923, the day's high.

The Bureau of Labor Statistics said the U.S. economy added 155,000 jobs in December, more than the expected 150,000 increase, after an upwardly revised 161,000 rise the previous month.

In addition, the U.S. employment rate remained unchanged at 7.8% last month, compared with expectations for a decline to 7.7%.

In Canada, official data showed that the economy added 39,800 in December, blowing past expectations for a 5,000 rise, after a 59,300 increase the previous month.

Canada's unemployment rate ticked down to 7.1% last month from 7.2% the previous month. Analysts had expected the unemployment rate to decline to 7.0% in December.

Meanwhile, markets were jittery after the minutes of the Fed's December policy meeting showed that officials began debating an end to bond-buying as early as this year even while preparing to boost stimulus to a new record.

Investors also remained cautious over the longer term outlook in the U.S., with negotiations on raising the debt ceiling still to come in February.

Elsewhere, the loonie was higher against the euro with EUR/CAD falling 0.23%, to hit 1.2862.

Also Friday, preliminary data showed that consumer price inflation in the euro zone remained unchanged at an annualized rated of 2.2% last month. Analysts had expected consumer price inflation to tick down to 2.1% in December.

Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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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