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Forex - USD/CAD little changed after U.S. data

Published 01/02/2014, 09:27 AM
Loonie holds steady against greenback
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EUR/CAD
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Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Thursday, but remained supported after the release of disappointing U.S. jobless claims data boosted safe haven demand.

USD/CAD hit 1.0615 during early U.S. trade, the pair's lowest since December 25; the pair subsequently consolidated at 1.0616, easing 0.05%.

The pair was likely to find support at 1.0596, the low of December 25 and resistance at 1.0707, the high of December 6.

Demand for the greenback strengthened after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000.

Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000.

Meanwhile, the risk-related loonied came under pressure after a report earlier showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November.

The data was published one day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.

The loonie was higher against the euro, with EUR/CAD retreating 0.83% to 1.4491.

In the euro zone, Markit research group said its final manufacturing purchasing managers' index for the bloc remained unchanged at 52.7 last month, in line with expectations.

A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December, from a reading of 54.2 the previous month. Analysts had expected the index to remain unchanged last month.

France's manufacturing PMI fell to a seven-month low of 47.0 in December, from 47.1 in November, compared to expectations for the index to remain unchanged.

Later in the day, the Institute of Supply Management was to release a report on manufacturing activity in the U.S.


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