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Forex - USD/CAD touches session highs after weak Canadian data

Published 05/07/2014, 08:47 AM
U.S. dollar touches session highs vs. Canadian dollar after weak Canadian housing data
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Investing.com - The U.S. dollar edged up to session highs against the Canadian dollar on Wednesday after data showed that the number of new building permits issued in Canada fell unexpectedly in March, but gains were checked ahead of testimony by Federal Reserve Chair Janet Yellen later in the session.

USD/CAD edged up to 1.0902 from 1.0890 ahead of the data. The pair was likely to find support at 1.0857 and resistance at 1.0950.

The Canadian dollar dipped after Statistics Canada reported that the number of new building permits issued in March tumbled 3%, confounding expectations for a gain of 4.3%.

February’s figure was revised to a drop of 11.3% from a previously reported decline of 11.6%.

The greenback remained under pressure ahead of testimony to Congress by U.S. central bank head Janet Yellen later Wednesday. Ms. Yellen was widely expected to reiterate interest rates will remain on hold for longer, in spite of last month’s stronger-than-forecast U.S. nonfarm payrolls report.

Concerns over the crisis in Ukraine also weighed on market sentiment, as conflict between the government and pro-Russian separatists in the east and south of the country continued to escalate, fuelling fears over a civil war.

Elsewhere, the loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD trading at 1.5178.

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