Forex - USD/CAD hits session high after poor Canadian building data

Published 11/05/2012, 09:09 AM
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Investing.com - The U.S. dollar hit a session high against the Canadian dollar on Monday, following weaker-than-expected Canadian building data, while uncertainty ahead of Tuesday’s U.S. presidential elections also boosted safe haven demand.

USD/CAD hit 0.9976 during early U.S. trade, the session high; the pair subsequently consolidated at 0.9973, rising 0.16%.

The pair was likely to find support at 0.9920, Friday’s low and resistance at 1.0012, Friday’s high.

Demand for the greenback was underpinned as investors focused on the outcome of Tuesday’s U.S. elections, with opinion polls pointing to a close race between incumbent President Barack Obama and Republican challenger Mitt Romney.

Investor confidence was also hit by concerns over whether Greece’s parliament would approve a package of spending cuts and tax hikes in a vote on Wednesday, which will determine if Athens receives its next tranche of financial aid.

In Canada, official data showed that the number of building permits issued in September fell significantly more-than-forecast as a result of declines in all three components of the non-residential sector.

Statistics Canada said building permits fell by fell by 13.2% in September, compared to expectations for a 3% decline.

The U.S. dollar remained supported after official data on Friday showed that the U.S. economy added 171,000 jobs in October, beating forecasts for an increase of 125,000 and boosting the U.S. economic outlook.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.2749.

Later Monday, the Institute of Supply Management was to publish data on U.S. service sector activity.



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