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Forex - USD/CAD edges lower after mixed U.S. data

Published 06/12/2014, 09:37 AM
U.S. dollar edges down to more than 1-week lows against Canadian dollar

Investing.com - The U.S. dollar edged down to a more than one-week low against the Canadian dollar on Thursday, following the release of some mixed U.S. data on retail sales and initial jobless claims.

USD/CAD dipped 0.06% to 1.0861, the lowest since June 2.

The pair was likely to find support at 1.0821, the low of May 30 and resistance at 1.0905, Wednesday’s high.

The Labor Department reported that the number of people filing for initial jobless benefits in the week ending June 7 increased by 4,000 to 317,000. The consensus forecast had been for a decline of 3,000.

The unexpected increase in jobless claims was not seen as altering the view that the labor market is continuing to gradually improve.

At the same time, the Commerce Department said U.S. retail sales rose 0.3% in May, falling short of expectations for a 0.6% gain. However, retail sales for April were revised up to a 0.5% gain from a previously reported increase of 0.1%.

Core retail sales, which exclude automobile sales, eased up 0.1% in May, disappointing forecasts for a 0.2% increase. Core sales in April were revised up to 0.4% from a previously reported flat reading.

Elsewhere, the broadly weaker euro was steady at six month lows against the loonie, as the Canadian dollar is also known, with EUR/CAD at 1.4705.

The euro has weakened broadly since the European Central Bank cut all its main rates to record lows last Thursday and imposed negative deposit rates on commercial lenders for the first time, in a bid to stave off the risk of deflation in the euro zone.

The single currency showed little reaction earlier in the day after official data showed that industrial production in the region rose 0.8% in April, ahead of forecasts for a 0.4% increase.

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