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Forex - USD/CAD falls to almost 3-monht low after U.S. data

Published 01/26/2012, 09:43 AM
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Investing.com - The U.S. dollar fell to an almost three-month low against its Canadian counterpart on Thursday, as positive U.S. data and new hopes of progress in a deal to restructure Greek debt supported demand for riskier assets.

USD/CAD hit 0.9994 during early U.S. trade, the pair’s lowest since November 1; the pair subsequently consolidated at 1.0006, shedding 0.37%.

The pair was likely to find support at 0.9913, the low of October 31 and resistance at 1.0087, the high of September 21.

Official data showed earlier that U.S. core durable goods orders rose significantly more-than-expected in December, advancing for the third consecutive month.

The U.S. Census Bureau said core durable goods orders rose 2.1% in December after a 0.5% rise the previous month, surpassing expectations for a 0.9% rise.

A separate report showed that U.S. jobless claims rose slightly more-than-expected last week, after dropping to the lowest level in nearly four years the previous week.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 21 rose to 377,000 from 356,000 the previous week. Analysts had expected U.S. jobless claims to rise to 370,000 last week.

Despite the increase, jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 11 of the past 13 weeks.

Meanwhile, talks on a debt swap deal between debt strapped Greece and its private creditors were to resume in Athens later in the day.

Sentiment was boosted by Greek media reports that the country’s creditors were prepared to accept lower interest rates on new bonds to be issued to replace their existing Greek holdings.

The loonie was steady against the euro with EUR/CAD edging down 0.02%, to hit 1.3164.

Also Thursday, crude oil for delivery in March jumped 1.46% to trade at USD100.91 a barrel on the New York Mercantile Exchange.   

Raw materials, including oil account for about half of Canada’s export revenue.


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