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Forex - USD/CAD edges down but losses seen limited

Published 12/22/2015, 09:28 AM
© Reuters.  Greenback slips vs. loonie but remains near more than 11-year highs
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Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Tuesday, after data showed that the U.S. economy grew less than initially estimated in the third quarter, but concerns over declining oil prices continued to dampen demand for the Canadian currency.

USD/CAD hit 1.3916 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3943, slipping 0.12%.

The pair was likely to find support at 1.3851, Friday’s low and resistance at 1.4000, Friday’s high and a more than 11-year peak.

The U.S. Commerce Department reported that gross domestic product grew at an annual rate of 2.0% in the three months ending September 30, better than expectations for 1.9%.

Preliminary data initially pegged U.S. growth at 2.1% in the third quarter. The U.S. economy grew 3.9% in the second quarter.

The commodity-related Canadian dollar remained under pressure since crude oil prices fell to 34.29$ on Friday, the lowest level since 2004.

Prices slightly recovered on Tuesday, but concerns over a global supply glut continued to weigh.

The loonie was lower against the euro, with EUR/CAD rising 0.21% to 1.5263.

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