Forex - USD/CAD edges higher as Greece swap deal eyed

Published 03/07/2012, 09:40 AM
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Investing.com - The U.S. dollar was slightly higher against its Canadian counterpart on Wednesday, after slightly better than forecast U.S. employment data, as markets focused on the outcome of a Greek debt restructuring deal.

USD/CAD hit 1.0025 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0023, inching up 0.05%.

The pair was likely to find support at 0.9935, Tuesday’s low and resistance at 1.0048, the high of February 27.

Trade remained subdued ahead of Thursday’s deadline for Greece’s private creditors to sign up to a bond swap deal, which is aimed at writing down 53.5% of the country's EUR177 billion debt.

A participation rate of more than 75% of creditors is required for Greece to secure a EUR130 billion bailout in order to avoid a default when a bond repayment due on March 20.

Markets remained largely unchanged after a report by U.S. payroll processing firm ADP showed that the private sector added 216,000 jobs in February, beating expectations for an increase of 205,000.

The previous month’s figure was revised up to a gain of 173,000 from a previously reported increase of 170,000.

In Canada, official data showed that building permits dropped 12.3% in February, the steepest drop in eight months and significantly more than the forecast 2.3% decline, reversing all of the previous month’s downwardly revised 10.5% gain.

The loonie, as the Canadian dollar is also known was fractionally higher against the euro, with EUR/CAD inching up 0.02% to hit 1.3134.

Also Wednesday, official data showed that U.S. non-farm productivity rose more than initially expected in the final three months of 2011, while unit labor costs jumped more-than-expected.


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