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Forex - USD/CAD rises despite downbeat U.S. data

Published 05/15/2015, 09:28 AM
© Reuters.  Greenback gains ground vs. loonie even as U.S. data disappoints
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, even as data showed that U.S. industrial production fell unexpectedly last month, while a separate report showed that Canadian manufacturing production rose more than anticipated in March.

USD/CAD hit 1.2046 during early U.S. trade, the pair's highest since May 12; the pair subsequently consolidated at 1.2040, gaining 0.44%.

The pair was likely to find support at 1.1920, Thursday's low and a four-month low and resistance at 1.2108, the high of May 12.

The Federal Reserve reported that U.S. industrial production fell 0.3% in April, confounding expectations for a 0.1% rise. The change in industrial production in March was revised to a 0.3% decline from a previously estimated 0.6% fall.

U.S. manufacturing production was flat last month, compared to expectations for an increase for 0.2%. However, the change in manufacturing production for March was revised to a 0.3% rise from a previously estimated 0.1% uptick.

The data came after the Federal Reserve Bank of New York said its Empire State manufacturing index rose to 3.9 in May from minus 1.19 the previous month. Analysts had expected the index to climb to 5.00 this month.

Meanwhile, Statistics Canada reported on Friday that manufacturing sales rose 2.9% in March, exceeding expectations for a 1.2% increase. The change in manufacturing sales in February was revised to a 2.2% drop from a previously estimated 1.7% fall.

A separate report showed that Canada's foreign securities purchases rose by C$22.47 billion in March after an increase of C$9.35 billion in February, whose figure was revised from a previously estimated C$9.27 billion rise.

Analysts had expected foreign securities purchases to rise by C$7.23 billion in March.

The loonie was higher against the euro, with EUR/CAD slipping 0.11% to 1.3662.

Later in the day, the U.S. was to release data on consumer sentiment.

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