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Forex - USD/CAD eases off 3-month high after upbeat U.S. data

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Forex Pros - The U.S. dollar trimmed gains against its Canadian counterpart on Thursday, easing off a three-month high as risk aversion eased after data showed that U.S. housing starts and initial jobless claims came in better-than-expected.

USD/CAD pulled back from 0.9897, the pair's highest since March 17 to hit 0.9845 during early U.S. trade, still up 0.56% on the day.

The pair was likely to find support at 0.9669, Wednesday's low and resistance at 0.9938, the high of March 17.

The Commerce Department said U.S. housing starts rose 3.5% to a seasonally adjusted annual rate of 560,000 units in May, outstripping expectations for an increase to 550,000.

In a separate report, the Labor Department said the number of people filing for initial jobless benefits last week fell to a seasonally adjusted 414K, surpassing expectations for a decline to 420K.

Earlier in the day, the greenback strengthened broadly as concerns that Greece's sovereign debt crisis will spread to other indebted peripheral euro zone nations boosted safe haven demand.

The Canadian dollar was also lower against the euro, with EUR/CAD rising 0.38% to hit 1.3934.

Also Thursday, Statistics Canada said foreign investment in Canadian securities strengthened further in April, reaching a three-month high of CAD8.2 billion.

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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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