Forex - USD/CAD remains lower as sentiment firms up

Published 10/25/2012, 09:41 AM
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Investing.com - The U.S. dollar remained lower against the Canadian dollar on Thursday, as market sentiment was bolstered by stronger-than-forecast U.S. data on durable goods orders and jobless claims, while better-than-expected U.K. data on third quarter growth also underpinned risk appetite.

USD/CAD hit 0.9903 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9923, slipping 0.11%.

The pair was likely to find support at 0.9843, the low of October 19 and resistance at 0.9947, the session high.

In the U.S. official data showed that durable goods orders, which includes transportation items, jumped by a seasonally adjusted 9.9% in September, compared to expectations for a 7.1% gain.

Excluding volatile transportation items durable goods orders rose by a seasonally adjusted 2.0% last month, beating expectations for a 0.8% gain.

Separately, the Labor Department said the number of people who filed for unemployment assistance in the U.S. last week fell to 369,000, from 392,000 the previous week, compared to expectations for a decrease to 370,000.

Earlier in the day, official data showed that the U.K. economy expanded by 1.00% in the three months to September, pulling out of the longest double dip recession since 1955 and outstripping expectations for a 0.6% gain.

The Canadian dollar remained supported after the Bank of Canada said it envisages "gradual" interest rate increases over the next two years.

The BoC left rates unchanged at 1.00% following its policy meeting on Tuesday.

The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD dipping 0.07% to 1.2878.

Later Thursday, the U.S. was to release official data on pending home sales.



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