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Forex - USD/CAD declines in thin trade

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Investing.com -

Investing.com - The U.S. dollar declined against its Canadian counterpart on Wednesday, as the greenback's recent upward trend prompted investors to lock in gains and as trading volumes were expected to remain thin with no major U.S. data to be released throughout the session.

USD/CAD hit 1.0890 during early U.S. trade, the pair's lowest since August 19; the pair subsequently consolidated at 1.0894, retreating 0.53%.

The pair was likely to find support at 1.0860, the low of August 15 and resistance at 1.0956, the session high.

he dollar found support on Tuesday after the Conference Board said its index of consumer confidence rose to 92.4 this month, the highest since October 2007, from a reading of 90.3 in July.

The data fuelled further optimism over the strength of the U.S. economic recovery.

Last week, Federal Reserve Chair Janet Yellen said at Jackson Hole that the U.S. economy is recovering and added the labor market is improving as well.

The loonie was higher against the euro, with EUR/CAD declining 0.43% to 1.4359.

In the euro zone, data showed that the Gfk German consumer climate index fell to 8.6 this month, from a reading of 9.0 in July. Analysts had expected the index to remain unchanged in August.

The weak data added to speculation that the European Central Bank could implement fresh easing measures, after ECB President Mario Draghi said at Jackson Hole last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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