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Forex - USD/CAD rises in early trade

Published 06/26/2015, 09:26 AM
Greenback gains ground vs. loonie in subdued trade
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, as Thursday's upbeat U.S. data continued to support the greenback and investors continued to focus on Greek debt talks.

USD/CAD hit 1.2397 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2380, gaining 0.46%.

The pair was likely to find support at 1.2273, the low of June 24 and resistance at 1.2423, the high of June 24.

The dollar remained supported after data on Thursday showed that U.S. personal spending rose by 0.9% in May, above expectations for a gain of 0.7%.

The report also showed personal income rose by 0.5% in May, in line with forecasts and after rising 0.5% in April.

In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 20 increased by 3,000 to 271,000 from the previous week’s total of 268,000. Analysts had expected initial jobless claims to rise by 4,000 to 272,000 last week.

Meanwhile, market sentiment remained under pressure as negotiations between Greece and its creditors broke down once again on Thursday.

Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.

If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

The loonie was also lower against the euro, with EUR/CAD rising 0.18% to 1.3837.

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