Forex - USD/CAD pares losses after Canada GDP data
Investing.com
Published Jun 30, 2011 09:31AM ET
USD/CAD hit 0.9646 during U.S. morning trade, the pair’s lowest since May 20; the pair subsequently consolidated at 0.9670, shedding 0.28%.
The pair was likely to find support at 0.9639, the low of May 20 and resistance at 0.9823, Wednesday’s high.
Earlier in the day, Statistics Canada said gross domestic product was flat in April, after advancing by a seasonally adjusted 0.3% in March. Analysts had expected Canada’s GDP to contract by 0.1% in April.
Canada’s economy grew at an annualized rate of 2.8% in April, slightly higher than expectations for a 2.7% increase, the statistics office said. The previous month’s figure was revised up to 2.9% from 2.8%.
Both the goods-producing and the services sectors remained unchanged in April.
Meanwhile, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 24 declined by 1K to a seasonally adjusted 428K, after rising by 429K in the previous week.
Economists had expected jobless claims to fall to 420K.
The loonie rallied to a six-week high earlier after data on Wednesday showed that Canadian core consumer price inflation rose more-than-expected in May, fanning speculation over a near-term interest rate hike by the country’s central bank.
The Canadian dollar was also higher against the euro, with EUR/CAD edging 0.05% lower to hit 1.3988.
Later in the day, the U.S. was release data on manufacturing activity in the Chicago region, while the Federal Reserve was to end its USD600 billion bond-buying program, known as QE2.
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Written By: Investing.com
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