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Forex - USD/CAD close to multi-year low on risk appetite, oil

Published 04/07/2011, 10:01 AM
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Investing.com – The Canadian dollar was trading close to multi-year highs against its U.S. counterpart on Thursday, as higher oil prices and improved risk sentiment continued to lend support to the commodity linked currency.

USD/CAD hit 0.9576 during early U.S. trade, the daily low; the pair subsequently consolidated at 0.9578, shedding 0.29%.

The pair was likely to find short-term support at 0.9567, Wednesday’s low and the pair’s lowest since mid-November 2007 and resistance at 0.9640, Wednesday’s high.

Earlier in the day, Brent crude was trading above USD122 a barrel, close to a two-and-a-half-year high, while U.S. crude was steady above USD109 a barrel, pressured higher by ongoing violence in the oil-rich Middle East and North Africa regions.

Elsewhere, official data showed that Canadian building permits rose significantly more-than-expected in February.

Statistics Canada said the total value of permits issued in February rose 9.9%, increasing at the fastest pace in five months, after tumbling by an upwardly revised 6.6% in January. Analysts had expected a gain of 1.6% in February.

The loonie was also higher against the euro, with EUR/CAD shedding 0.55% to hit 1.3691.

Also Thursday, the U.S. Department of Labor said jobless-benefit claims fell 10,000 last week to 382,000, the fewest since February 26.

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