Forex - USD/CAD hits new daily high after weak Canadian data

Published 11/08/2010, 08:41 AM
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Investing.com – The U.S. dollar extended earlier gains against its Canadian counterpart on Monday, surging to a fresh daily high, following the release of worse than expected Canadian data on housing starts.

USD/CAD hit 1.0055 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.0048, gaining 0.45%.

The pair was likely to find support at 0.9990, last Friday’s low and resistance at 1.0089, Friday’s high.

Earlier in the day, industry data showed that Canadian housing starts fell more-than-expected in October.

In a report, the Canada Mortgage and Housing Corporation said that the annualized number of new homes which began construction in October fell to 168,000 units, down from a revised 185,000 units in September.

Economists had expected housing starts to decline to 180,000 units in October.

Commenting on the report, chief economist at CMHC’s Market Analysis Centre Bob Dugan said, “Housing starts moved lower in October due to a decrease in urban single starts in all regions, with the exception of Atlantic Canada”.

Meanwhile, the loonie was up against the euro, with EUR/CAD shedding 0.39% to hit 1.3983.

Later in the day, two members of the U.S. Federal Reserve Open Market Committee, James Bullard and Kevin Warsh, were to deliver speeches.

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