Investing.com - The Canadian dollar rose against its U.S. counterpart on Friday, breaking parity after stronger-than-expected jobs figures out of the U.S. sparked a risk-on trading session.
Talk the Federal Reserve remains poised to stimulate the economy regardless of the jobs data further weakened the greenback.
In U.S. trading on Friday, USD/CAD hit 0.9988, down 0.84%, up from a low of 0.9980 and off a high of 1.0076.
The pair sought to test support at 0.9980, the earlier low, and resistance at 1.0054, the high of July 30.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, according to the Bureau of Labor Statistics, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.
The news sparked a global risk-on trading session in which investors ditched the greenback for higher-yielding currencies and equities.
Meanwhile, the Institute for Supply Management's service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers' index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
The service sector employs the bulk of the U.S. labor market.
Analysts had expected the index to rise 52.0.
The dollar also sank against the Canadian currency on sentiment that despite the strong jobs numbers, intervention from the Federal Reserve cannot be ruled out.
The Federal Reserve has said it will remain poised to stimulate the economy as needed, and one solid jobs report doesn't signal an end to tepid recovery and a beginning of more robust expansion.
Federal Reserve stimulus tools such as bond purchases from banks tend to weaken the dollar, and talk such easing was possible on top of a risk-on trading session sent the greenback falling and the loonie rising.
The Canadian dollar, meanwhile, was down against the euro and up against the yen, with EUR/CAD up 0.71% and trading at 1.2358 and CAD/JPY up 1.31% at 78.69.
Talk the Federal Reserve remains poised to stimulate the economy regardless of the jobs data further weakened the greenback.
In U.S. trading on Friday, USD/CAD hit 0.9988, down 0.84%, up from a low of 0.9980 and off a high of 1.0076.
The pair sought to test support at 0.9980, the earlier low, and resistance at 1.0054, the high of July 30.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, according to the Bureau of Labor Statistics, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.
The news sparked a global risk-on trading session in which investors ditched the greenback for higher-yielding currencies and equities.
Meanwhile, the Institute for Supply Management's service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers' index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
The service sector employs the bulk of the U.S. labor market.
Analysts had expected the index to rise 52.0.
The dollar also sank against the Canadian currency on sentiment that despite the strong jobs numbers, intervention from the Federal Reserve cannot be ruled out.
The Federal Reserve has said it will remain poised to stimulate the economy as needed, and one solid jobs report doesn't signal an end to tepid recovery and a beginning of more robust expansion.
Federal Reserve stimulus tools such as bond purchases from banks tend to weaken the dollar, and talk such easing was possible on top of a risk-on trading session sent the greenback falling and the loonie rising.
The Canadian dollar, meanwhile, was down against the euro and up against the yen, with EUR/CAD up 0.71% and trading at 1.2358 and CAD/JPY up 1.31% at 78.69.