Investing.com - The U.S. dollar fell against the Canadian dollar on Friday after stronger than expected Canadian employment data, while a softer than expected U.S. jobs report prompted profit taking in the greenback.
USD/CAD was down 0.84% to 1.1327 late Friday, paring the week’s gains to 0.35%.
The Labor Department reported that the U.S. economy added 214,000 jobs in October, missing expectations for jobs growth of 231,000.
September’s figure was revised up to 256,000 from a previously reported 248,000 and August’s figure was also revised up to 203,000 from 180,000 pointing to underlying strength in the labor market.
The U.S. unemployment rate ticked down to a fresh six-year low of 5.8% from 5.9% in September.
The data prompted investors to sell the dollar to lock in gains following its recent rally but the data did little to alter expectations that the Federal Reserve will raise interest rates ahead of its other major peers.
The Canadian dollar received an additional boost after official data showed that the country’s economy added 43,100 jobs last month, compared to expectations for a decline of 5,000.
The Canadian unemployment rate unexpectedly fell to a six year low of 6.5% from 6.8%.
The U.S. dollar rose to more than five year highs against the loonie earlier in the week as steep falls in oil prices pressured the commodity exposed Canadian dollar lower.
Oil prices have been hit by speculation that rising global supplies will be more than enough to meet slowing demand.
In the week ahead, investors will be looking ahead to Friday’s reports on U.S. retail sales and consumer confidence, while Canada has no major economic releases scheduled.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday and Wednesday as there are no major events on these days.
Monday, November 10
Canada is to publish data on housing starts.
Thursday, November 13
Canada is to release a report on new house price inflation.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, November 14
Canada is to produce data on manufacturing sales.
The U.S. is to round up the week with data on retail sales and import prices as well as preliminary data on consumer sentiment from the University of Michigan.