Forex - USD/CAD hits 2-day high after weak Canadian data

Published 12/06/2010, 08:44 AM
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Investing.com – The U.S. dollar extended gains against its Canadian counterpart on Monday, rising to a 2-day high after official data showed that the number of Canadian building permits issued in October tumbled more-than-expected.

USD/CAD hit 1.0084 during European afternoon trade, the pair’s highest since last Thursday; the pair subsequently consolidated at 1.0079, advancing 0.41%.

The pair was likely to find support at 1.0024, last Thursday’s low and resistance at 1.0189, Thursday’s high.

Statistics Canada said municipalities issued building permits worth CAD6.2 billion in October, down 6.5% from September, when permits were up by a revised 14.9%. Analysts had expected building permits to decline 2.9% in October.

A decline in both the residential and non-residential sectors in Ontario and Quebec led the October decrease.

Elsewhere, in an interview with CBS's "60 Minutes" aired Sunday, Federal Reserve Chairman Ben Bernanke said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.

Meanwhile, the loonie was up against the euro, with EUR/CAD tumbling 0.78% to hit 1.3359.

Later in the day, Canada was to publish data on manufacturing activity.

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