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Forex - USD/CAD eases off 5-day low after U.S. trade data

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Forex Pros - The U.S. dollar pared losses against its Canadian counterpart on Wednesday, pulling back from a five-day low after U.S. government data showed the trade deficit widened more-than-expected in March.

USD/CAD clawed back up from 0.9514, the pair's lowest since May 4, to hit 0.9550 during early U.S. trade, still down 0.17% on the day.

The pair was likely to find support at 0.9457, the low of May 3 and resistance at 0.9652, Tuesday's high.

Earlier in the day, the Commerce Department said the deficit rose to USD48.2 billion, the widest since June 2010, from a slightly downwardly revised USD45.4 billion in February.

Economists had expected the trade deficit to widen to USD47.0 billion in March.

The report said U.S. exports grew 4.6% in March, in the biggest month-to-month gain since March 1994. Imports grew 4.9%, the highest since September 2008.

The loonie was also higher against the euro, with EUR/CAD tumbling 0.89% to hit 1.3663.

Also Wednesday, a government report showed that Canada's trade surplus made a small rebound in March after two months of decline, as broad gains in exports outstripped higher imports.

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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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