Forex – USD/CAD Climbs on Strong U.S. Employment Report

© Reuters. Greenback moves higher vs. loonie in early trade – The U.S. dollar climbed against its Canadian counterpart on Friday, helped by the release of strong U.S. employment report, while lower oil prices dampened demand for the commodity-related Canadian currency.

was up 0.76% at 1.2359 by 09:30 a.m. ET (13:30 GMT), the highest since January 30.

The greenback was boosted after the U.S. Department of Labor reported that the economy added in January, beating expectations for a 184,000 gain.

The unemployment rate remained unchanged at this month, in line with expectations.

The report also showed that average hourly earnings rose in January, as expected.

The greenback was already supported after the Federal Reserve, at the conclusion of its policy meeting on Wednesday, signaled its confidence about inflation and growth in the U.S.

The Fed said that inflation is , boosting expectations for further interest rate hikes under incoming central bank head Jerome Powell.

Meanwhile, the Canadian dollar was weighed by a decline in on Friday, although losses were likely to be attributed to profit-taking on the commodity’s most recent gains.

The loonie was lower against the euro, with up 0.29% at 1.5396.

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