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Forex - USD/CAD rises above parity after weak Canadian CPI

Published 01/25/2011, 09:20 AM
USD/CAD
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EUR/CAD
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Investing.com – The Canadian dollar extended early losses against its U.S. counterpart on Tuesday, moving back below parity, following official data showing that Canadian consumer prices rose less-than-expected in November.

USD/CAD hit 1.0005 during European late afternoon trade, the pair’s highest since January 20; the pair subsequently consolidated at 0.9986, gaining 0.52%.

The pair was likely to find support at 0.9911, the day’s low and resistance at 1.003, the high of January 20 and a two-week high.

Statistics Canada said that its all-items consumer price index rose by 2.4% in December on a year-over-year basis, while the core index was up 1.5%.

Economists had expected all-items CPI to rise by 2.5% on annual basis after a 2.0% increase in November. The core index was expected to rise by 1.6% from 1.4% in November.

The loonie was also down against the euro, with EUR/CAD climbing 0.36% to hit 1.36.

Also Tuesday, the S&P/Case-Shiller U.S. home price index fell more-than-expected in November, declining for the fifth consecutive month.

Later in the day, the U.S. was to publish data on consumer confidence.

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