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Forex - USD/CAD down as foreign investment in Canada surges ahead

Published 07/19/2010, 08:58 AM
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Investing.com – The Canadian dollar was up against its U.S. counterpart on Monday, as official data showed that foreign investment in Canada rose more-than-expected in May.

USD/CAD hit 1.0501 during European afternoon trade, a daily low; the pair subsequently consolidated at 1.0528, shedding 0.5%.

The pair was likely to find support at 1.0378, the low of July 16 and resistance at 1.0676, the high of July 6.

Earlier in the day, Statistics Canada said non-residents investment in Canadian securities increased to CAD 23.16 billion in May, after rising to CAD 12.36 billion in April.

Analysts had expected an increase of CAD 8.05 billion in May.

The report said non-residents acquired CAD 15.2 billion of Canadian bonds in May, the largest investment since the high of $19.5 billion in May 2009. Yields on federal government bonds declined significantly in May, reaching their lowest levels since April 2009.

The report also said that Canadian investors sold CAD 2.9 billion of foreign securities from their holdings, in the largest repatriation of funds from abroad since January.

The loonie was also up against the euro, with EUR/CAD shedding 0.43% to hit 1.3627.

Later in the day, the U.S. was due to publish data on single-family home sales.

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