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Forex - USD/CAD slips lower but remains supported

Published 11/09/2015, 09:26 AM
Greenback loses ground vs. loonie in early trade
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Monday, as investors locked in profits from the greenback's rally to one-month highs following Friday's strong U.S. employment report.

USD/CAD hit 1.3245 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3287, falling 0.15%.

The pair was likely to find support at 1.3152, Friday's low and resistance at 1.3432, the high of September 30.

The greenback strengthened broadly after the Labor Department reported that the U.S. economy added 271,000 jobs last month, well ahead of the 180,000 expected by economists and the largest increase since December.

The unemployment rate fell to a seven-and-a-half year low of 5.0%.

The strong data paved the way for the Federal Reserve to raise interest rates at its December meeting, a move that would make the dollar more attractive to yield-seeking investors.

The jobs data came after Fed Chair Janet Yellen said that the U.S. economy was performing well, and that December would represent a “live possibility” for raising interest rates if economic data supported it.

In Canada, data on Monday showed that housing starts rose by 198.100 in October, disappointing expectations for an increase of 200.000. Housing starts rose by 231.300 in September, whose figure was revised from a previously estimated gain of 230.700.

The loonie was higher against the euro, with EUR/CAD edging down 0.19% to 1.4263.

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