🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Forex - USD/CAD pares losses after weak U.S. data

Published 02/28/2012, 09:40 AM
USD/CAD
-
EUR/CAD
-
Investing.com - The U.S. dollar pared losses against its Canadian counterpart on Tuesday, retreating from a one-week low following a significantly larger-than-forecast drop in U.S. durable-goods orders for January.

USD/CAD pulled back from 0.9940, the pair’s lowest since February 21, to hit 0.9974 during early U.S. trade, still down 0.16%.

The pair was likely to find support at 0.9924, the low of February 21 and resistance at 1.0019, the high of February 22.

The U.S. Commerce Department said orders for long lasting manufactured goods fell by the most in three years in January.

Durable goods orders dropped 4.0% after rising by 2.1% in December, far worse than forecasts for a 0.8% decline.

Core durable goods orders, which excludes transportation items, tumbled by a seasonally adjusted 3.2% in January, confounding expectations for a flat reading.

A separate report showed that U.S. home prices fell more-than-expected in December, declining for the 18th consecutive month.

The weak manufacturing data sent oil prices lower, with crude oil contracts for delivery in April shedding 0.43% on the New York Mercantile Exchange, to trade at USD108.09 a barrel.

Raw materials, including oil account for about half of Canada’s export revenue.

But market sentiment remained supported as investors looked ahead to Wednesday's launch of the European Central Bank’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.

The loonie, as the Canadian dollar is sometimes known, was fractionally lower against the euro, with EUR/CAD easing up 0.08% to hit 1.3396.

Later in the day, the Conference Board was to release a report on U.S. consumer confidence.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.