Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Wednesday after official data showed that U.S. producer price inflation slowed in July, raising concerns over weakness in the economy.
USD/CAD hit 1.0325 during early U.S. trade, the session low; the session low; the pair subsequently consolidated at 1.0328, shedding 0.14%.
The pair was likely to find support at 1.0300, Tuesday’s low and resistance at 1.0368, the session high.
The Department of Labor said producer prices were flat last month, confounding expectations for a 0.3% increase, after rising 0.8% in June.
The core producer price index eased up 0.1% in July, missing forecasts for a 0.2% increase.
The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Federal Reserve to begin phasing out its USD85 billion-a-month asset purchase program later this year.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD slipping 0.14% to 1.3700, despite data showing that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
Eurostat said the bloc’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%. It was the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5% in the three months to June, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than forecast 0.7%.
USD/CAD hit 1.0325 during early U.S. trade, the session low; the session low; the pair subsequently consolidated at 1.0328, shedding 0.14%.
The pair was likely to find support at 1.0300, Tuesday’s low and resistance at 1.0368, the session high.
The Department of Labor said producer prices were flat last month, confounding expectations for a 0.3% increase, after rising 0.8% in June.
The core producer price index eased up 0.1% in July, missing forecasts for a 0.2% increase.
The disappointing data raised fresh doubts over whether the economic recovery is strong enough for the Federal Reserve to begin phasing out its USD85 billion-a-month asset purchase program later this year.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD slipping 0.14% to 1.3700, despite data showing that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
Eurostat said the bloc’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%. It was the fastest quarterly expansion since the first quarter of 2011.
France’s economy expanded 0.5% in the three months to June, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than forecast 0.7%.