Canadian Dollar Higher Against Greenback, Euro And Yen
During early deals on Friday, the Canadian dollar edged higher against the currencies of U.S., Europe and Japan despite a fall in oil prices.
On the other hand, the loonie showed weakness against the Australian dollar.
Crude oil fell on concern a rise in unemployment in the U.S. to the highest in almost 26 years will reduce fuel demand in the world’s largest energy user.
Oil eased below $67 a barrel today, after a nearly 4 percent fall in the previous session, pressured by a stronger dollar and investor concern about the economic outlook and energy demand.
U.S. crude for August delivery slipped 9 cents to $66.64 a barrel by 4:08 am ET. London Brent crude fell 14 cents to $66.51.
Against the US dollar, the Canadian currency traded higher during early deals on Friday. At 4:45 am ET, the loonie reached a high of 1.1572 against the greenback, compared to 1.1633 hit late New York Thursday. The next upside target level for the loonie is seen around 1.148.
Reflecting continued weakness in the labor market, the US Labor Department released a report yesterday showing that employment fell by much more than expected in June, pushing the unemployment rate up to a new twenty-five year high.
The report showed that non-farm payroll employment fell by 467,000 jobs in June following a revised decrease of 322,000 jobs in May. Economists had been expected a decrease of about 365,000 jobs compared to the loss of 345,000 jobs originally reported for the previous month.
With the bigger than expected decrease in employment, the unemployment rate edged up to 9.5 percent in June from 9.4 percent in May. The increase lifted the unemployment rate to its highest level since August of 1983, although it was below economist estimates of 9.6 percent.
The Canadian dollar that closed Thursday’s North American session at 1.6290 against the European currency climbed to 1.6199 at 4:55 am ET Friday. If the Canadian currency gains further, 1.614 is seen as the next target level.
Retail sales in the Eurozone declined 3.3% year-on-year in May, faster than a revised 2.5% drop in the preceding month, the Eurostat said today. Economists expected sales to fall 2.7%.
Month-on-month, retail sales were down 0.4% in May, reversing a 0.1% rise in the preceding month. Economists expected a drop of 0.1%. Retail sales excluding automotive fuel declined 0.4% compared to a 0.1% growth in April.
Against the Japanese yen, the loonie showed strength during Friday’s early deals. At 2:55 am ET, the loonie-yen pair hit a high of 83.10, moving from an early Asian session’s 4-day low of 82.33. On the upside, 84.8 is seen as the next target level for the Canadian dollar. The loonie-yen pair closed Thursday’s New York deals at 82.53.
The U.S. financial markets are closed today in observance of the ‘Independence Day’.
