The US dollar reached a two-week low against the Canadian dollar

05.10.2015
On Monday, the US dollar fell to two-week lows against the Canadian dollar, as reduced expectations on US interest rates growth before the end of the year, dispelled the demand for it.
 
In early US trade, USD/CAD pair reached 1.3064, the lowest since September 18; the pair subsequently consolidated at 1.3114, shedding 0.28%.
 
The pair is likely to receive support at 1.3006, the low of September 18 and resistance at 1.3334, Friday's high.
 
On Friday, the Labor Department reported that the last month, in US there were created just 142000 jobs, well below the growth level of 203000, which the economists had expected.
The August figure was revised to 135000 from an initial 173000.
 
The average hourly wages during the month has not changed and the share of economically active population decreased to 62.4% compared to 62.6% in August. The US unemployment rate remained unchanged at 5.1%, in line with expectations.
 
The reports have increased fears that the slowdown in world economy also affected the US economy, and therefore the investors have revised the terms of the first Fed rate hike at the beginning of 2016.
 
Meanwhile, the Canadian dollar was also supported by higher oil prices.
Crude oil futures for November delivery rose 2.35% to $ 46.57 at the opening of US trading.
 
The Canadian dollar rose against the euro; EUR/CAD dropped by 0.28% to 1.4710.
Previously, Markit research group said that the service sector PMI in Germany fell to 54.1 in September from 54.3 in August, while the services PMI in France rose to 51.9 from 51.2.
The Eurozone services PMI, released by Markit, fell to 53.7 last month from 54.0 in August.
 
Also on Monday, dollar rose against the euro. EUR/USD was traded at 1.1187, shedding 0.21%.
The support is likely to be at the level of 1.1133, Thursday's low, and resistance is likely to be at the level of 1.1319, Friday's high.
 
Meanwhile, the euro went up against the British pound and the Japanese yen. The EUR/GBP pair gained 0.05% to reach the level of 0.7386, and the EUR/JPY rose 0.17% to reach 134.77.
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