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Forex - USD/CAD steady after jobless claims report

Published 07/18/2013, 09:32 AM
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Investing.com - The U.S. dollar was steady against the Canadian dollar on Thursday after official data showed that the number of people who filed for unemployment assistance in the U.S. fell more-than-expected last week.

USD/CAD hit 1.0439 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0409, inching up 0.03%.

The pair was likely to find support at 1.0354, Wednesday’s low and resistance at 1.0441, the high of July 16.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 24,000 to 334,000, compared to expectations for a drop of 13,000 to 345,000.

Investors were looking ahead to a second day of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the session.

In the first day of his semi-annual testimony to Congress on Wednesday Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.

Meanwhile, the Canadian dollar showed little reaction after official data showed that wholesale sales rose significantly more-than-expected in May.

Statistics Canada said wholesale sales rose by 2.3%, compared to expectations for a 0.4% increase.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.22% to 1.3627.

The U.S. was to release data on manufacturing activity in Philadelphia later in the trading day.




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