Forex - USD/CAD pulls away from 2-1/2 month highs on U.S. data
Investing.com
Published Jul 02, 2015 09:27AM ET
Greenback erases gains vs. loonie as U.S. data disappoints
Investing.com - The U.S. dollar erased gains against its Canadian counterpart on Thursday, pulling away from a 2-12 month peak as disappointing U.S. employment data dampened expectations for an upcoming rate hike by the Federal Reserve.
USD/CAD pulled away from 1.2633, the pair's highest since April 13, to hit 1.2577 during early U.S. trade, slipping 0.10%.
The pair was likely to find support at 1.2475, Wednesday's low and resistance at 1.2647, the high of April 13.
The Labor Department reported on Thursday that the economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000. May’s figure was revised down to 254,000 from 262,000 previously.
The unemployment rate ticked down to 5.3% last month, from 5.5% in June. Economists had expected the jobless rate to decline to 5.4%.
A separate report showed that the number of individuals filing for initial jobless benefits in the week ending June 27 increased by 10,000 to 281,000 from the previous week’s total of 271,000. Analysts had expected initial jobless claims to fall by 1,000 to 270,000 last week.
Meanwhile, investors remained cautious after Greek Prime Minister Alexis Tsipras on Wednesday urged Greeks to reject an international bailout deal in a referendum due to be held on July 5, souring hopes of any breakthrough.
Less than 24 hours before, Tsipras had written a conciliatory letter to creditors asking for a new bailout that would accept many of their terms.
On Wednesday Greece became the first developed country to default on the International Monetary Fund after its second bailout program expired late Tuesday. The IMF confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment.
The loonie was lower against the euro, with EUR/CAD rising 0.19% to 1.3941.
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.