FX.co ★ Canadian Dollar Higher As Jobs Data Backs BoC Rate Hike Hopes

The Canadian dollar was higher against its most major counterparts in the European session on Friday, as nation's jobs data showed that the unemployment rate fell to the lowest level on record in March, cementing expectations for a 50 basis-point hike by the Bank of Canada next week.

Data from Statistics Canada showed that the unemployment rate dropped to 5.3 percent from 5.5 percent in February. The rate came in line with expectations.

This was the lowest rate on record since comparable data became available in 1976.

The employment rose by 72,500 jobs in March after gaining by 336,600 jobs in the previous month. Economists had expected employment to increase by 80,000 jobs.

The BoC's policy meeting is due next week, with economists forecasting a rate hike of 50 basis points amid strong growth.

European stocks are higher, after a sharp decline fueled by concerns about the Fed's plan to move aggressively to control inflation.

The loonie was trading at 1.3673 against the euro, up from a low of 1.3712 seen at 6:50 am ET. Should the loonie strengthens further, it is likely to test resistance around the 1.35 region.

The loonie touched a 2-day high of 98.84 against the yen and a 1-week high of 0.9365 against the aussie, from Thursday's closing values of 98.42 and 0.9415, respectively. The next possible resistance for the loonie is seen around 100.00 against the yen and 0.90 against the aussie.

In contrast, the loonie was down against the greenback, at more than a 2-week low of 1.2619. The loonie is likely to find support around the 1.28 region.