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Forex - USD/CAD erases gains as Canadian producer prices surge

Published 01/05/2011, 09:06 AM
USD/CAD
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EUR/CAD
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Investing.com – The U.S. dollar erased gains against its Canadian counterpart on Wednesday, falling to a fresh daily low after official data showed that Canadian producer prices jumped more-than-expected in November.

USD/CAD retreated from 1.0022, the daily high, to hit 0.9959 during European afternoon trade, shedding 0.22%.

The pair was likely to find support at 0.9915, Tuesday’s low and resistance at 1.0033, Tuesday’s high.

Statistics Canada said that said the raw materials purchase price index rose by a seasonally adjusted 3.5% in November, more than the consensus forecast for a 2.2% rise.

The report said prices for petroleum and coal products rose 3.9% in November on "strong demand in emerging countries and colder weather in Europe." Upward pressure on prices also came from a 0.7% increase in primary metal products.

The loonie was sharply higher against the euro, with EUR/CAD plunging 1.26% to hit 1.3115.

Also Wednesday, industry data showed that U.S. non-farm payrolls jumped in December. Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 297K in December, more than the forecast 100K rise.

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