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Forex - USD/CAD erases gains after U.S. data

Published 11/26/2014, 09:32 AM
Dollar pulls away from session highs vs. loonie as U.S. data disappoints
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar erased gains against its Canadian counterpart on Wednesday, after the release of a number of disappointing U.S. economic reports and as markets eyed additional U.S. data to come.

USD/CAD pulled away from 1.1297, the session high, to hit 1.1249 during early U.S. trade, down 0.08%.

The pair was likely to find support at 1.1189, the low of November 21 and resistance at 1.1327, the high of November 21.

The greenback came under pressure after the Labor Department reported that the number of Americans filing new applications for unemployment benefits rose to 313,000 last week, a gain of 21,000. It was the highest level since early September.

The number of continuing claims fell to a 14-year low of 2.31 million, indicating that the jobs market is still recovering.

At the same time, official data showed that U.S. personal spending rose 0.2% in October, below forecasts for an increase 0.4%. Personal income rose also rose 0.2%, falling short of forecasts of 0.4%.

Another report showed that durable goods orders rose 0.4% last month, compared to expectations for a decline of 0.4%, but core durable goods orders fell 0.9%, against forecasts for a 0.5% gain.

The loonie was steady against the euro, with EUR/CAD inching up 0.07% to 1.4053.

Sentiment on the single currency remained vulnerable after a senior European Central Bank official said on Wednesday that the ECB could begin quantitative easing as soon as the first quarter of next year.

Later in the day, the U.S. was to release reports on new and pending home sales as well as revised data on consumer sentiment.

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