Forex - USD/CAD rises as strong U.S. data supports

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Investing.com - The U.S. dollar rose against its Canadian counterpart on Tuesday, as the release of strong U.S. housing data boosted demand for the greenback.

USD/CAD hit 1.0918 during early U.S. trade, the pair's highest since August 15; the pair subsequently consolidated at 1.0912, adding 0.23%.

The pair was likely to find support at 1.0860, the low of August 15 and resistance at 1.0940, the high of August 13.

The U.S. Commerce Department said that the number of building permits issued last month jumped by 8.1% to 1.052 million units from June's total of 973,000. Analysts expected building permits to rise by 2.5% to 1.0 million units in July.

The report also showed that U.S. housing starts soared by 15.7% last month to hit 1.093 million units from June's total of 945,000, beating expectations for an increase of 8.6% to 969,000 units.

A separate report showed that U.S. consumer prices rose 0.1% last month, meeting estimates, after rising 0.3% in June.

Core consumer prices, which exclude food and energy costs, inched up by 0.1% last month, compared to expectations for a 0.2% gain. Core CPI rose 0.1% in June.

Meanwhile, market sentiment mildly improved amid fresh hopes that talks between Russia and Ukraine would result in a breakthrough to ease geopolitical tensions in the region.

The loonie was steady against the euro, with EUR/CAD easing 0.07% to 1.4539.

Sentiment on the euro remained vulnerable after poor economic growth data last week added to pressure on the European Central Bank to implement fresh measures to shore up the faltering recovery in the region.

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This article appears in: Investing , Forex and Currencies

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