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Forex - USD/CAD comes off 3-month high in quiet trade

Published 10/30/2012, 09:31 AM
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EUR/CAD
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Investing.com - The U.S. dollar came off a three-month high against the Canadian dollar in on Tuesday, falling below parity in light, thin trade as U.S. markets remained closed for a second day in the wake of Hurricane Sandy.

USD/CAD hit 0.9992 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9992, shedding 0.18%.

The pair was likely to find support at 0.9941, Friday’s low and resistance at 1.0017, the session high and the pair’s highest since August 3.

Market sentiment was boosted after the initial damage caused by the massive storm appeared to have been less severe that some had feared.

In Canada, official data showed that producer prices rose for the first time in five months in September.

Statistics Canada said producer price inflation rose by 0.5%, ahead of expectations for a 0.2% increase. The cost of raw materials for manufacturing was up 1.3% in September, outstripping expectations for a 1.1% increase.

Concerns over the fiscal and economic outlook for Spain persisted after official data showed that the country’s economy contracted by 0.3% in the third quarter, extending the recession into a fourth quarter.

The data came one day after Spanish Prime Minister Mariano Rajoy said he would request a bailout "when I think it is in the interests of Spain".

The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD up 0.33% to 1.2959.

In the U.S., a report by Standard & Poor’s with Case-Shiller said its house price index rose at an annualized rate of 2.0% in August from a year earlier, slightly better than expectations for a 1.9% increase.



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