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Pound, Loonie Rise Against Dollar on Upbeat Data

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Financial concept. US dollar vs Canadian dollar.

The US dollar fell against its Canadian counterpart and the pound on Friday. The loonie gained on a strong jobs report, while the pound benefited from upbeat economic data.

The Canadian dollar was also helped by rising oil prices, which helped drive the commodity-linked currency higher. An unexpected draw in US gas inventories boosted oil prices despite an increase in crude stockpiles.

The US dollar fell to 1.3072 against the loonie in early trade before settling 0.44% lower at 1.3087.

A report from Statistics Canada showed the number of employed people rose by 48,300 in January. Analysts were expecting a decline of 5,000. The figure is up from December when employment increased by 46,100.

Canada’s unemployment rate also declined to 6.8%, according to the report. Analysts were expecting the reading to remain unchanged in January.

The euro retreated against the Canadian dollar, falling 0.84% to 1.3887.

Meanwhile, the pound gained against the dollar thanks to upbeat manufacturing and trade data.

The UK Office for National Statistics said manufacturing was up by 2.1% in December, beating analyst forecasts of a 0.5% gain. In November, manufacturing production was up by 1.4%, revised up from an initial estimate of 1.3%.

In December, manufacturing production was up by 4% on year-on-year basis, beating expectations of a 1.8% gain.

Industrial production climbed 1.1% in the same period, beating expectations of a 0.2% rise.

The UK trade deficit narrowed in December to 10.89 billion pounds, down from 11.56 billion pounds the previous month. The figure was revised down from an initial estimate of 12.16 billion pounds. Analysts were expecting the trade deficit to narrow to 11.5 billion pounds in December.

The pound was at 1.2515 against the dollar, up 0.14%, after hitting a high of 1.2521 earlier in the morning. Sterling also gained against the euro, with EUR/GBP falling 0.26% to 0.8502.

Among currency CFD trading assets, the dollar remained supported after the Trump administration said it would be announcing an ambitious tax reform plan in the coming weeks.

Trump said the new tax plan will be “phenomenal” and rival reform measures put in place during the Reagan era. No details of the plan were released. News of the tax plan came during the president’s meeting with airline CEOs on Thursday.

The White House’s comments came after the release of an upbeat jobless claims report, which showed a decrease in initial jobless claims by 12,000 to 234,000. Analysts were expecting claims to increase by 4,000.

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