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Forex - USD/CAD slips lower as investors lock in gains in early trade

Published 03/09/2015, 09:23 AM
© Reuters.  Greenback loses some ground vs. loonie on profit-taking
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Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Monday, as investors locked in gains following the greenback's recent broad rally, while downbeat Canadian housing data weighed on the local currency.

USD/CAD hit 1.2574 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2588, shedding 0.27%.

The pair was likely to find support at 1.2453, the low of March 6 and resistance at 1.2664, the high of February 24.

The greenback strengthened broadly after official data on Friday showed that the U.S. economy added 295,000 jobs in February, far more than the 240,000 forecast by economists. The unemployment rate ticked down to 5.5% from 5.7% in January, the lowest since May 2008.

The strong report fuelled expectations that the Federal Reserve will start raising interest rates around the middle of this year.

In Canada, official data on Monday showed that housing starts rose by 156,300 units last month, below expectations for an increase of 179,000. January's figure was revised to a 187,000 gain from a previously estimated 187,300 rise.

The loonie was higher against the euro, with EUR/CAD slipping 0.13% to 1.3667.

Sentiment on the euro remained vulnerable as the eurogroup of euro zone finance ministers prepared to hold talks in Brussels later in the day to discuss proposed Greek economic reforms.

Last month Athens reached a temporary agreement with its lenders to extend its bailout by four months, but must complete a bailout review before it can access further financial aid.

Also Monday, the European Central Bank confirmed that it started asset purchases under its quantitative easing program.

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