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Forex - USD/CAD hits 2-day high after soft U.S. jobs data

Published 04/19/2012, 09:32 AM
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Investing.com - The U.S. dollar extended gains against its Canadian counterpart on Thursday, advancing to a two-day high as market sentiment was dented by disappointing U.S. employment data and ongoing concerns over the debt crisis in the euro zone.

USD/CAD hit 0.9940 during early U.S. trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 0.9926, gaining 0.15%.

The pair was likely to find support at 0.9879, the session low and resistance at 1.0010, Tuesday’s high.

Official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.

The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.

The previous week’s figure was revised up to 388,000 from 380,000.

Elsewhere, concerns over the outlook for Spain’s fiscal health lingered, despite initial relief following an auction of Spanish government bonds.

Spain raised slightly more than the full targeted amount of EUR2.5 billion earlier, but borrowing costs were higher, with the yield on 10-year bonds increasing to 5.74%, from 5.33% from a similar auction last month.

The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.02% to hit 1.3009.

Later in the day, the U.S. was to industry data on existing home sales, as well as a report on manufacturing activity in the Philadelphia area.


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