Forex - USD/CAD rises after upbeat U.S. inflation data
Investing.com
Published Jun 15, 2011 09:37AM ET
USD/CAD hit 0.9728 during early U.S. trade, the daily high; the pair subsequently consolidated at 0.9711, gaining 0.35%.
The pair was likely to find support at 0.9654, the low of May 31 and resistance at 0.9770, Tuesday’s high.
The U.S. Labor Department said consumer prices rose a seasonally adjusted 0.2% in May, after a 0.4% increase the previous month. Core inflation, which excludes volatile energy and food costs, rose by a monthly 0.3% in May, the biggest jump since July 2008, after rising by 0.2% in April.
Economists had forecast a 0.1% rise in overall prices, and a 0.2% gain for core inflation.
The report said the rise in underlying inflation was mainly driven by price increases for clothing, housing, new vehicles and recreation.
Elsewhere, Statistics Canada said Canadian manufacturers saw sales slip 1.3% in April, in line with expectations, as the Japanese earthquake cut off supplies to the auto industry.
Meanwhile, the Canadian dollar was up against the euro, with EUR/CAD shedding 0.70% to hit 1.3880.
Also Wednesday, the New York Federal Reserve said its index of manufacturing conditions fell significantly more-than-expected in June, falling into negative territory for the first time since November.
The bank’s index of general business conditions tumbled to -7.8 in June from 11.9 in May. Analysts had expected the index to climb to 13.0 in June.
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Written By: Investing.com
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