Canadian dollar leaps to 1-week high as U.S. jobs data impresses
By Claire Sibonney
TORONTO (Reuters) - The Canadian dollar jumped to a more than one-week high against its U.S. counterpart on Friday and outperformed all other major currencies after data showed U.S. employers stepped up hiring in October.
The currency brushed off a tepid domestic employment report to cheer a larger-than-expected gain in U.S. payrolls that signaled hope for an economic recovery in Canada's biggest trading partner.
"We would have thought initially at first blush that the weakness in the Canadian data would have mitigated Canadian dollar gains," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"That has not turned out to be the case."
The currency hit an intraday high of C$0.9921, or $1.0080, its strongest level since October 25, even though the U.S. dollar .DXY itself rallied to a near two-month peak against a basket of currencies after the release of the U.S. jobs numbers, the last major report card on the economy before Tuesday's presidential election.
The Canadian dollar ended the North American session at C$0.9956 to the greenback, or $1.0044, compared with Thursday's close of C$0.9968, or $1.0032. It ended the week up 0.2 percent.
"The financial market flows, the (speculative) flows, asset management flows, real money flows have all been selling U.S. dollars against Canada," Spitz said.
Looking ahead, he said he saw U.S. dollar support around C$0.9890-9900 and resistance around the 200-day moving average near parity. Continued...