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Forex - USD/CAD lower in early trade

Published 08/08/2013, 09:28 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was lower against the Canadian dollar on Thursday as persistent concerns over when the Federal Reserve may begin to pull back its stimulus program weighed.

USD/CAD hit 1.0395 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0396, shedding 0.26%.

The pair was likely to find support at 1.0366, Wednesday’s low and resistance at 1.0444, Wednesday’s high.

The greenback remained under pressure after two senior Federal Reserve officials said Tuesday that they would not rule out the withdrawal of stimulus measures at the bank’s September meeting.

The greenback showed little reaction after official data showed U.S. initial jobless claims stayed close to the lowest level since January 2008 last week.

The Labor Department said the number of people who filed for unemployment assistance in the U.S. last week rose by 5,000 to a seasonally adjusted 333,000, while claims for the previous week were revised up to 328,000 from 326,000.

In Canada, official data showed that the new house price index rose by 0.2% in June, undershooting expectations for a 0.3% increase.

Market sentiment was boosted earlier after Chinese trade data showed that exports were up 5.1% from a year earlier in June, easing concerns over a slowdown in the world’s second-largest economy.

Imports were 10.9% higher on a year-over-year basis, pointing to strong domestic demand.

The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD slipping 0.09% to 1.3890.

In the euro zone, data released on Thursday showed that German exports were up 0.6% from the previous month in June, but the report also showed that imports fell 0.8%, sparking concerns over weakening domestic demand.



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