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Forex - USD/CAD trims gains after weak U.S. data

Published 05/16/2013, 09:29 AM
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Investing.com - The U.S. dollar trimmed gains against the Canadian dollar on Thursday as weak U.S. economic data dampened expectations that the Federal Reserve could scale back its easing program this year.

USD/CAD pulled back from 1.0208, the session high, to hit 1.0181 during early U.S. trade, still up 0.25%.

The pair was likely to find support at 1.0150, the session low and resistance at 1.0218, Wednesday’s high and a two-week high.

The Department of Labor said number of people who filed for unemployment assistance in the U.S. rose by 32,000 to a seasonally adjusted 360,000 last week, the largest increase in six months, compared to expectations for an increase of 2,000 to 330,000.

A separate report showed that consumer price inflation in the U.S. fell 0.4% in April, compared to expectations for a 0.2% decline, down for a second consecutive month.

Meanwhile, the Commerce Department said the number of building permits issued in the U.S. rose 14.3% to a seasonally adjusted 1.017 million in April, above expectations for a 3.8% increase to 0.973 million units.

However, U.S. housing starts fell by 16.5% last month to a seasonally adjusted 0.853 million, compared to expectations for a decline of 6.4% to 0.973 million.

The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.23% to 1.3125.

The U.S. was to release the Philly Fed manufacturing index later in the trading day.





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