USD/CAD Edges Higher In Holiday-Thinned Trade

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Includes: FXC, UDN, USDU, UUP
by: Investing.com

The U.S. dollar edged higher against its Canadian counterpart on Monday, pulling away from Friday's more than two-year low, although gains were expected to remain limited by downbeat U.S. jobs data and fresh geopolitical tensions.

Trading volumes were expected to remain thin, with markets in both the U.S. and Canada closed for the Labor Day Holiday.

USD/CAD added 0.18% to 1.2419 by 09:30 a.m. ET (13:30 GMT), after hitting a more than two-year low of 1.2341 on Friday.

The greenback remained under pressure after the U.S. Labor Department reported on Friday that the economy added 156,000 jobs in August from the prior month, while the unemployment rate ticked up to 4.4%.

Economists had expected 180,000 new jobs and an unemployment rate of 4.3%.

The report indicated that the Fed may be more reluctant to raise interest rates again before the end of the year.

Markets were also jittery after North Korea said on Sunday that it had conducted a test of a hydrogen bomb intended to be mounted on an intercontinental ballistic missile.

Pyongyang called the test a complete success, with a greater yield than previous tests and no adverse impact on the environment.

The news prompted the U.S. to warn of a "massive" military response if it or its allies were threatened.

U.S. President Donald Trump also threatened to cut off trade with any country doing business with North Korea.

The loonie was higher against the euro, with EUR/CAD climbing 0.54% to 1.4782.

Investors also continued to follow developments in the U.S. oil market, as about 5.5% of the U.S. Gulf of Mexico's oil production, or 96,000 barrels of daily output, remained shut on Sunday after storm system Harvey made landfall in Texas more than a week ago.

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