Forex - USD/CAD dips on Yellen, data, Canadian factory report weighs
Published Nov 15, 2013 02:01PM ET
Soft Canadian factory sales figures cushioned the greenback's losses and kept the pair range bound.
In U.S. trading on Friday, USD/CAD hit 1.0452, down 0.14%, up from a low of 1.0450 and off a high of 1.0485.
The pair sought to test support at 1.0441, Thursday's low, and resistance at 1.0526, Thursday's high.
The Federal Reserve reported earlier that U.S. industrial production edged down 0.1% in October after expanding 0.7% in September.
Analysts were expecting a 0.2% expansion, and the surprise contraction weakened the dollar by fanning sentiments the Fed won't scale back its USD85 billion in monthly bond purchases until early 2014.
Bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
On Thursday, Fed Chair Nominee Janet Yellen told the Senate Banking Committee that while the economy is on the mend, inflation and unemployment rates have room to move closer to Fed comfort zones, which markets interpreted as a sign the U.S. central bank wants to see consistent improvements to economic indicators before winding down stimulus tools.
Her comments put to rest lingering expectations that the Fed may announce plans to scale back stimulus tools at its December meeting.
Also in the U.S., the Federal Reserve of Bank of New York said its manufacturing activity index declined to -2.21 in November from 1.52 in October, defying expectations for a rise to 5.00, which added to the dollar's decline.
A separate report showed that U.S. import prices fell 0.7% in October compared to expectations for a 0.4% decline after a downwardly revised 0.1% rise the previous month.
Elsewhere, Statistics Canada reported that manufacturing sales rose 0.6% in September, missing market calls for a 1% increase after a 0.2% decline the previous month, which capped the loonie's advance against the greenback.
The Canadian dollar, meanwhile, was down against the euro and up against the yen, with EUR/CAD up 0.05% and trading at 1.4093 and CAD/JPY up 0.39% at 95.93.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.