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

Published 08/05/2013, 09:30 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was little changed against the Canadian dollar on Monday as investors awaited U.S. service sector data due later in the session amid uncertainty over when the Federal Reserve may start to taper its stimulus program.

USD/CAD hit 1.0379 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0388, dipping 0.04%.

The pair was likely to find support at 1.0337, Friday’s low and resistance at 1.0438, the high of July 18.

Investors were looking ahead to the Institute for Supply Management's non-manufacturing index later Monday for indications on the strength of the U.S. economic recovery.

The greenback remained under pressure after Friday’s weaker-than-forecast U.S. jobs data dampened expectations that the U.S. central bank will start to unwind its asset purchase program later this year.

Official data showed that the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists. June's figure was revised down to 188,000 from a previously reported 195,000.

The unemployment rate ticked down to 7.4% from 7.6% in June, as more people left the labor force.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.30% to 1.3764.

The euro weakened after official data showed that retail sales in the currency bloc fell 0.5% in June and were down 0.9% on a year-over-year basis. The month-on-month decline was the largest since December 2012.

A separate report showed that the euro zone’s services purchasing managers’ index I rose to 49.8 in July, from a final reading of 48.3 in June.




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